OK, so let’s not focus on where these financial-expert-bloggers have been blatantly wrong, instead let’s turn our focus to Europe & politics, right?
After all, whenever the stock market gets good news out of company earnings or domestic economic data, they always divert our attention to news outside of the U.S. It is amazing how quickly they find an article somewhere in the world.
Thanks to Google and other news search engines, all you have to do is copy and paste a key phrase (say….Europe resolution) in one of these search engines and you have instantaneously found the source of the stock market reaction! Amazing!
Or even when the stock market hits that sour spot of the trading cycle, they sometimes get lucky enough to find some third ranked officer in a country of Malta that believes that there will be no resolution!
I also like their political stance on things. They now believe in the right wing solution via a candidate who offers the idea of no taxation and no government spending!
But if you study the countries now in trouble in Europe, are the ones with no clear tax policy (such as no property taxes) and no enforcement of tax laws (if you add the underground economy it would probably result to 500bps to 600bps to GDP)!
The problem with Europe is that they are cutting government spending, while raising taxes. To me, government spending not only stimulates the economy but also indirectly increases tax revenues.
So although I love their utopian “tea party movement” views in theory, I hate them in practice…
Can we now just get back to predicting the future price movements of the U.S. markets based on domestic stock specific fundamentals?