Just when I bring myself to post one of his pieces; a good one, I would add; the man reverses himself inside of 24 hours.
Complete one-eighty, to be viewed here:
Maybe it’s the large cash position we have on hand in our ActionALertsPlus portfolio. Maybe it’s the sigh of relief — audible for me even as it seems to be inaudible for so many other people — but I want to do some buying here. I know the hazards:
1. Unknowns in the budget bill
2. Anemic hiring
4. Lack of leadership
5. European woes
But guess what. We’ve dealt with all of those before, and they didn’t kill us. The systemic risk, the crisis risk of the president’s invoking the 14th amendment or selling the gold in Fort Knox, is off the table, and that’s what matters to me.
Which means earnings matter again. Now, having been through enough earnings to make some judgments, one can conclude that other than tech, steel, government-related (meaning funded) health care and banks, you’ve got far more good quarters than bad.
It’s true that consumer confidence has been sapped, and there’s no new stimulus coming from Washington, D.C. But there are plenty of companies that can do well with simple certainty from Washington. If Washington drops out of the picture — help or harm — it is a win for business.