Bob Dylan once said: "Everything is Broken." Was he talking about now? I sit here and watch the political games being played and setting this Country up for failure. It is discouraging, but as Jim Cramer says" "There's always a bull market somewhere." I have so much faith in the soundness and values of the American people, that it's a wait and "throw the Bums out" moment for me. The next year should be very enlightening. We have before our eyes the effects of Liberalism. Soon, smelling the petri dish will stink to high heavens. No one will be able to deny the negative consequences of the left way of thinking and acting.
The stock market (DJIA) was today, at one time, down about 400 points. It has shed 1,100 points in the last eleven days. It has given back all the gains of 2011. Is the slide over? I'm not sure. The market anticipates, then over reacts. Some of this slide is in advance of the jobs report tomorrow---expected to be not so favorable. This however is indicative of the larger response in the economy to:
1) Negative business and economic comments by this administration. Never, at least since the hatred espoused by the FDR administration, has the vitriol been so vile. The President should be ashamed.
2) The talk of more taxation, and the imposition of huge government regulatory agencies and all their destruction.
My solution: Cut taxes, not raise them. Repeal ObamaCare and the insidious Dodd-Frank Bill. Have the President stay home and be quiet. He is not the solution. He is the problem. I know it won't happen, so the electorate will have to shut him up at the ballot box. And they will.
On last point on the Dow. I've looked hard at the charts. There is good support at 11,800 and better (more solid) support at 11,600. The news could be really bad, but I think most of the bad news (Jobs) has been already calculated in. We still need our summer rally. I hope it comes.
In the meantime, because uncertainty means "no," I like getting back to cash. This market turmoil needs to end, before it's safe to go back in the water.
More to come after the market close today...