It takes a lot to make a global economy function and it is estimated that 30% of the performance of the economy has more to do with investor and public confidence than the actual fundamentals.
In the information age, news travels at the speed of light across the planet, everything circulates in real time, much like the electronic transfers and email.
It is a non-stop 24/7 barrage of data flow.
During the first quarter of 2009 we noticed a sharp uptick in the market, a classical bear market rally, but it did not have enough momentum to break any speed records.
Job losses continued to mount and all the predictions of a rebound in the stock market began to fizzle as the second quarter got under way.
Let's look at some of the headlines of April 1, 2009 and see what we can make of it all.
GDP growth up for the month 5% Freight World Wide back up 57% Jobs Actually increased in March by 1,400,000 President Obama resigns due to Kenyan Birth Place Dow up 800 pts today Consumer Confidence up 35% Federal Government shut down due to unsigned budget New Oil Reserves Found in rural IL - 400 B Barrels est.
Could be 1 Trillion Drought is over - water surplus April Fools! Actual news: G-20 Making Progress - Protestors getting on TV Small Business Confidence improves slightly 3M laying off 1200 additional Porsche Profits Up VW building a plant in India Middle Eastern Nations on Military Buying Spree Hiring Freeze on Police Officers in LA March unemployment increased by 742,000 about what they expected Indeed, it was a light news day and there was some good and some bad.
Nevertheless, this news represents a shift, in that not all the news was bad as it had been since late September of 2008.