At these prices, now would be a good time to pick up some LNC, PRU, GE and MSFT.....
As to the rising likelihood of QE3 after the spate of weak economic reports and, as Rev Shark (and others) on RealMoney.com suggests, I believe the political opposition toward more quantitative easing, unlike last summer, is materially less hospitable.
It is a crutch used by the bullish cabal, and I am not falling for it.
As a result, the threshold to acceptance of a QE3 program is much lower with regard to acceptable GDP growth.
The financial sector is being obliterated. The fundamentals for the banking industry have turned more dire.
The ISM Manufacturing number for May was abysmal -- and you can't put lipstick on the (economic) pig. As confirmation, watch the yield on the 10-year U.S. note, which is at about 2.98%.
The yield on the 10-year U.S. note just dropped below 3% for the first time since December 2010. The economy has hit the wall.
Despite interest rates being driven lower and a lowly 4.55% 30-year mortgage rate, mortgage refinancings dropped by nearly 6% this week.
The Mortgage Bankers Association attributed the drop to "too many potential refi borrowers having too little equity remaining in their homes."
U.K. manufacturing PMI fell to 52.1 last month from a downwardly revised 54.4 in April, well below the 54.1 consensus. A disappointment.
In China, the May manufacturing index came in at 52. April's print was 52.9 and the expectation was 51.6. (If you believe this number, so far it looks like a soft landing in China).
The ADP was a disaster. Looks like a smooth and self-sustaining recovery is not in the cards.....