Monday, December 31, 2012

The Drama of It All

As this posting is written at mid-day January 31….still no “deal” on taxes and government spending. The markets are actually up a tad, which I assume points to the market being ready to go as soon as the “deal” is done.

Perhaps Jeff Macke summed it up well saying:

In a nutshell, there is no real cliff. We are about to start a series of tax hikes and spending cuts that will extend over the coming weeks and months. There is less drama than meets the eye today. Even if a last second agreement is announced, it won't be anywhere near comprehensive enough to staunch the bleeding from wounds Washington is inflicting on the economy.

And ……“The depressing state of our elected officialdom aside, the odds still favor the economic cycle saving us from ourselves. American manufacturing jobs are being created, home prices are rising and stocks have quietly posted four straight years of gains.

And ..…”Ironically, if D.C. could get out of the way, politicians could be fighting over credit for the economy rather than killing it in the crib.

We know per Winston Churchill (who knew us well): 

Americans can always be counted on to do the right thing...after they have exhausted all other possibilities."

So in the long run we know that it will all work out as the American manufacturing engine slowly cranks up.

What did I see in my weekend review?
 The 10-yr Treasury yield is at 1.63.

IBD (Investor Business Daily) now shows: Uptrend Under Pressure 
Copernicus Systems: Mixed

Moneys Flows:  Not available as of this writing

Currently my "Stocks for a Trade" now consists of:
(All gains or losses shown are the total since purchase)

RGR -11.99%  It's down badly but appears to be recovering in the past few days of trading

ETF’s for a trade are:
GLD  .77%
EWH .sold

AAPL  -17.37, but it seems reasonable it will climb soon…didn’t most get an Apple produce for Christmas?

What will I do?

Cash is good.

I understand that China has reached a soft landing in their economy so FXI is looking good as is  EWZ (Brazil). Perhaps EEM (Emerging Markets) is worth picking up soon.

I just have not completed that list of stocks to consider picking up if the cliff puts stocks on sales: but sure nothing wrong with KSU, BMY and HON mentioned last week

I hope you have a great week and a prosperous new year

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