today's market rally is a sucker's rally, based on rumor that some House Republicans may side with the Democrats and may extend the Bush's tax cuts for middle class (who make less than $250K a year). It will take about 48 Republicans in the House to defect for that to happen, I believe and it is not going to happen. As a matter of fact, jI just watched CNN and CNBC, and saw most of these House reps were leaving for the weekend, flying homes at the tax payers' expenses. It must be NICE to have a short work week. That means nothing will happen this week and I believe the market may tank next week if there is no development and it does not appears to be any at this time. I took a look at today's REITs sector, almost every single one was in the RED today. In the BDC sector, more BDCs were in the RED today than in the Green. KCAP tanked today because of being fined for overstating their asset values. (BDC buyers beware) The market rallied today, yet PSEC and even AAPL dropped. Most disturbing was a lot of pref. stock CEFs, probably the most stable dividend CEFs one can buy, were in the RED with HPS leading the pack, dropping more than 1% today. I believe PSEC may drop closer to or below $10 in the next two weeks. Therefore, if you plan to buy more, put your limited buy orders in. The market is extremely weak right now because even both precious metals (gold and silver) and oil were tanking. Not a very good sign for the overall market. Be warned. Jade
I also think today's rally is totally bogus. Dems want blah, blah blah. Repubs want this and that. Do any of these people really care about your children and grandchildren? Yeah, we'll make some cuts 10 years from now, which never happens.....sorry, not really a cut, just a small downward adjustment to the built in rate of annual budget growth. Oops...sorry again, we haven't actually had a budget in 3 or 4 years.
Exactly correct - and unfortunately probably less than 5% of Americans realize that when the President says he made the largest cut to discretionary spending in history last year - that its all make believe fantasy cuts in the out years of "baseline" spending built into current assumptions of what spending will be in 2019!
But you know what - we get what we deserve. Instead of electing men/women that are actually proven leaders with actual accomplishments - and all the scars, warts, sins, etc that go along with that.... We elect "good stories". Thats how you get a man elected as president - who is a nice man - but has accomplished exactly what in life? And no being elected to the State Senate in Chicago as a Democrat isn't an accomplishment. And no being a law professor for a couple of years isn't an accomplishment (worthy of the presidency). And no being a "community organizer" for a few years isn't an accomplishment. Actually it speaks to a man not very interested in the details or workings of anything - just in finding something different to do next year. And we wonder why we can't get any type of common sense deals done in DC???
"Hope" and "Change" got a man elected as president of the United States - think about that on a Saturday afternoon and you'll be left shaking your head. The same man is all about "fairness", but he refuses to make the tax code fair by getting rid of deductions that pick winners and losers - and instead add 4-5% to the top tax rate - which leaves Romney paying far less than the guy working day and night to build his business. But I guess fairness is just a political weapon to be trotted out to whip up hysteria in the masses and get them to the polls.