Right now many games of chicken are being played. Business vs workers, Dems vs GOP, bears vs bulls, etc.
It is in my opinion that the fiscal cliff will be resolved one way or the other.
You need not be a chicken and buy up equities with cocaine gorilla fever.
While I’m generally a bear who makes more short bets than longs, i have to say that the markets are giving me a gut feeling that for the next few months the BEARS ARE FUCKING DEAD.
The last time i felt this way the S&P went from 1100 to 1470 in no time at all.
The writing is on the wall. Bernanke says he has little tools left in the box; so congress and the White House need to take center stage, the markets have expressed dismay (not shear terror,) at not resolving the fiscal cliff, Spanish and Italian bond yields are falling like stones, idiot countries are lining up for austerity in exchange for bailouts, critical technical levels are broken and then erased instantly, and this is fucking America for Christ’s sake.
The only thing that i find suspicious is the enormous amount of dividends being paid out. Usually an equity trap, but plausible given next year’s tax implications.
Enjoy it for now. We shall see what happens over the next two qs. It seems like it is safe to play hard in the garden being long equities.
The bears are scared little shits climbing up trees.
Prepare for a gunshot in the cave while your sleeping bears.
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the fiscal cliff dont mean shit. thats all about taxation. has nothing to do with debt, which is the bigger problem. and that problem isn’t going away anytime soon.
true that drummerboy,
the fiscal cliff will be resolved giving the perception everything is a okay….if the economy stands om its own two feet for the next few qs then the punch bowl will be taken away and austerity put in place to try at alleviating our debt problem. then there will be blood in the markets….