enigmaman

Preview from Europe: Selling the News Yet Again

The USA and the world are facing some pretty stiff economic head winds, I mean just look around everybody is looking for green shoots because we need to feel like there is some "Hope" that things will get better and they will but when is anybodies guess. Everyday we seem to get some news that should be unsettling, like say the admin budget deficit surprise of 2 T$, thats huge but Bernanke reappointment was all the chatter like "Not to worry Bernanke will take care of things" I would bet he sleeps wearing depends because he has nightmares about the future. From the markets action the past few weeks it looks like its starting to quietly pay attention to the news, seen in pretty benign market action the last week, like its taking a breather trying to figure out what to do next, Im not saying the market is going to reverse but I dont see any more reason for it to go higher because the less worse news we are getting is making the future clearer and I think many will be saying to themselves " what am I thinking am I crazy" I have 50% in gains in six months in the worst economic meltdown in 70 years, in a higher income tax and rate environment, double digit unemployment, dead consumer, untenable deficit, runaway spending, heavy handed socially inclined government, What am I thinking "trees dont grow to the sky, bird in hand, dont look a gift horse in the mouth, pigs get fat hogs get slaughtered" seems like reality could be just around the corner, maybe there starting to think its time to book profits. Maybe they will then again maybe they wont, so expect a sunny day unless it rains.