Couple years back, I said talk of interest rates would put a pin in the market.
First talk, then the first quarter point to forestall "inflation", and voila, the entire next 4% worth of overnight rates would come out of the market, we're talking 2500 Dow points here. Remember?
I didn't count on the dollar also being the cream of the #$%$ paper currencies, and sure enough, the market doesn't know what to do with itself. It loves the Fed inflationary easing, so when that appears to be disappearing the market goes down, and the cream of the #$%$ paper currencies goes wildly upward, because the rest of the world follows our horrid example. One part of the govt says they're not going to buy gold, so that makes the dollar dearer because the government suddenly, relatively, has faith in fiat. That kills the stock market, so I guess next month they'll just say they were kidding.
They have good reason this morning to say that, because unemployment took at uptick to 7.8% with only 150K worth of jobs formed, right in the middle of XMAS hiring season, which ain't good kids for the next couple months. Some of the temps of the season are supposed to turn into workerbees full time--but then, there's Obamacare bills to pay, and a lot of firms want to skate under the under fifty employees rules.
So what do you have? You have a market that doesn't know what to do. Hooked on heroin, it feels that is going to dry up. Economy stays fragile, so hawkish sentiment by the Fed isn't warranted, assuming what they're doing is worth anything at all. The market thinks so, enough to scare away the few gamblers playing.
Silver is off of its lows of PM--but as we approach Friday opening bell, I wouldn't be surprised to see selloff on this one percent bounce "strength" as the market is still absorbing the Fed statements. Fed hawks who talk about "worry" and vote the bond buy anyway.
Why one of these days, we may have to go back to weighing a firm by its earnings and dividends and potential.