- Coming elections;
- Unfunded pensions;
- Precious metals strength;
- Efficacy of financial reforms;
- Uncertainty re: healthcare reforms;
- Questionable international FX policy;
- Sovereign political rifts (USA vs. et al);
- Increasing potential for state bail-outs;
- Ongoing trend of political ineptitude;
- Potential strengthening of unions;
- Swelling food stamps rolls;
- Rising consumer credit;
- Increasing tax rates;
- Weakening jobs;
- Insider sales.
A blogger and twitterer I follow, @ReformedBroker, wrote a piece today, here, indicating that perhaps a horizontal market with specific winners and losers would be the path of maximum frustration and thusly, the most likely route in the coming term. In the past I also subscribed to that theory, here and here. Today, though, I face a great sense of uncertainty because the past weeks have brought me to question the seemingly slim possibility of a new broad market take down. Our system of Western Financialism now faces increasing skepticism, both from within and outside the confines of our oceanic borders, as referenced here, and no stock would be immune from a coordinated attack on the infrastructure of our economy.
If the US markets have re-entered consolidation with the 9800 level (or a moderately up-sloping trend) as support, the futures jammers will have relinquished control to stock pickers. Alternatively, should the above concerns wash over the markets like the endlessly rising tides of an incoming tsunami no stock of quality or speculative nature would be safe. Hints at the rising number and price points of VIX bets surely cannot be discounted, but of course, we can never know they whys.
It occurs to me that between bubbles and busts, tax credits, refinancings, and all other manner of subsidies meant to enhance belief in this broken model, the American people have been run down a sluice dropping their wealth on the way. How many times can the tailings be reprocessed before nothing's left? The morals and morale yet erode daily, beginning at the top with government and corporate leadership thrust onto the platform of media coverage, only to disappoint with a heart breaking constance. These numerous examples serve to explain away unsavory behavior by a growing populace of amoral scumbags. A race to the bottom.
We can never forget to be at our best when no one is watching. It is the only way to reclaim spirit from the tailings these past decades have saddled the country with. It is our best chance of reaching that "somehow we always pull through."