And so it goes...

How is this bloody rally! That's the only way I could start this post I'm afraid.

I'm not complaining - I went long last Thursday and so far I'm smiling all the way to the bank but geez it goes against everything I would believe fundamentally.

Somebody raised a good point yesterday which I think we should stick in the back of our heads - the US earnings in particular haven't been as bad as people were expecting largely because these businesses have been hacking costs at every turn primarily around staff..

Now you go into the next reporting season with a far higher unemployment figure. Having said THAT you then need to step back and ask yourself whether or not the current rally in the stock-markets has a lot to do with excess liquidity coming in from the bailout packages - has the idea of printing money to get us out of a recession actually worked... If it has then inflation is right around the corner....

... need to think about this a bit.