Friday, February 1, 2008

Partying like it's 1999

Microsoft has finally done what everyone and their mother was expecting for the last year. It bought yahoo. And now the Microsoft -Google battle to the death can being for real, Should be fun to watch.

Having more or less called the short term bottom last week, this just adds to the pretty damn sweet 2 week return for me. However, I think this is the last hoorah of the mini-sucker rally. I will be getting back heavily into cash today and on Monday.

What was virtually ignored by the big merger news was that payrolls were officially down last month. That is the real news of the day. And the news is the recession is here. I don't care how many mergers keep coming. If people don't work,they don't buy. If people don't buy, companies make no profits. If companies make no profits, stock prices drop. It's that simple.

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