Going Into Fall, Rally Falters

The calls for bottoming have come out of rebounds in Singapore, France, Germany and others, while USA continues to deteriorate, though positive headlines seem to balance those bad. The question these last few weeks has been will America come back strongly, with 4% growth, or will growth be below 2%, perhaps tipping into another recession within a year.

What seems clear to me is that Western consumers cannot spend like they did, so unless the few companies with cash begin battling for market share by expanding, we are in for slow growth. Inflation in food prices with deflation in goods and services seems likely.

Guessing what can grow...

the internet is a low cost comfort, which makes Akami at a PE of 20 and a price of $16-19 seem reasonable.

the FSYS, CELG have returned well. investing in DBA has not.