and extremely unpredictable. You simply cannot short it or sell off all your longs, but buying and holdings too many volatile stocks can also be very detrimental to one's financial health. Now the general sentiment is that this market rally can very well continue into at least summer or later half of this year, then it will probably have a correction, again, nobody expects it to be more than 5%. I actually find this very peculiar because people actually believe they can predict the market and know how bad a correction will be in advance? Most of them did not seem to be able to do so in 2007 or even in 2010.
I was also quite disturbed to keep hearing many so called experts saying the Sequester is only a very small percentage of our government's budget, and therefore its impact would be almost negligible. It is indeed true that the cut can hardly make a dent on the Federal budget but the problem is that our economy just started its weak recover and we got hit by a 2% payroll taxes increase (or reinstatement to be accurate) because of how our politician's handling of the fiscal cliff and their refusing to even talk about the Sequester and allowed it to happen. I was surprised to see none of our credit agency has the courage to further reduce the credit rating of our government. Wal-mart just had one of its worse months in February. Have one of you see all these restaurant specials that were being advertised by TGI Friday, Red Lobsters, Outback steak house, April Bee such as two entrees for $20, or an entree plus an appetizer for $10? Do you know why? I believe it was because people started eating out less and all these restaurants are hurting. Most people now have less disposable incomes to spend on unnecessary items and eating out is one of them. Do you know that Newsweek had stopped printing a paper issue since last December. Many newspapers and magazines are not doing that great, thanks to internet and rising cost of printing and paper.
The matter of the fact is, our government has now become totally dysfunctional and our two parties can no longer agree on anything, whether concerning our fiscal, energy or national defense policies. None of them appear to put the country and its people as the number one priority as long as they will get reelected and receive their own benefit. No wonder the other days a GOP in the congress actually said he missed Ted Kennedy because since his passing away, there did not appear to have any politicians who can bring the two parties together. Vice president Biden has been doing that with limited successes. In short, I believe our country is in a very critical stage and whatever political developments (or none) will greatly impact the stock market. When this asset bubble blows up on our face, it would be very unexpected and very brutal. There are just too many greedy and naive investors out there right now.