“The market is taking it as sign that war will be delayed. But I'd rather wait for the Powell rebuttal before I make my mind up. The U.N. basically appears to be rejecting the Powell view.”
“But if this is the victory rally it is going to be short-lived unless we get that perfect war that follows on, which is a week or two and then a victory parade and then back out again.”
“Economic data is currently pointing to a double-dip recession. ... Investors are feeling bullet-proof at the moment but with most professionals away on holiday we expect the selling to begin again by the end of the month.”
“After the war there is going to be a sharp reckoning, and I suspect markets will have to correct to account for the fact that corporate earnings are looking extremely rocky and economic numbers on both sides of the Atlantic don't look great at all.”
“Market nerves are ragged. Its like Chinese water torture. We thought we'd have resolution from Blix, then we thought (U.S. Secretary of State Colin) Powell was going to give the definitive statement and now its dragging on until next Friday.”
