We sense a key change in the US, one we have highlighted in earlier sketches but that merits repeating: The electorate is undergoing a profound change in view, really an enlightenment regarding our economic situation. Lay folk have finally come to understand that the Fed cannot help and that Washington’s interventions have only caused problems.
The electorate’s awakening will translate through the political process.
This is a very bullish development for the US over the longer term. Every investor should take note, now, because in a few months this view will be taken for granted.
It means that we are not cursed to repeat past errors. It means we will thrive, 2012 and beyond.
The Fed we think is finished with its reckless activity, interventions which have only tanked the dollar and sparked less-than-deserving equities. It they try "the twist" it is only cheerleading. But the administration remains dangerous. The administration’s multiple interventions have not led to a recovery, simply to the reality of high deficits and exploding national debt, and now, everybody knows that.
We heard from BlackRock manger Bob Doll that companies are more likely to buy back shares than invest and hire as they don’t know what policy to expect from Washington. This echoes the consensus we also hear from CEO’s across the country.
CEO’s are paid to take risk. But they won’t play in a game where someone constantly intervenes, changing the rules mid play.
The electorate has finally come to grips with this reality as the key cause of their plight. Thus, they will insist on the rescinding of the worst and then leveling of the rest of regulations; they will insist on a fixed (and lower) tax policy, and finally, they will insist on a non-interventionist administration.
This is a very hopeful development because Washington is listening.
Robert Craven
The electorate’s awakening will translate through the political process.
This is a very bullish development for the US over the longer term. Every investor should take note, now, because in a few months this view will be taken for granted.
It means that we are not cursed to repeat past errors. It means we will thrive, 2012 and beyond.
The Fed we think is finished with its reckless activity, interventions which have only tanked the dollar and sparked less-than-deserving equities. It they try "the twist" it is only cheerleading. But the administration remains dangerous. The administration’s multiple interventions have not led to a recovery, simply to the reality of high deficits and exploding national debt, and now, everybody knows that.
We heard from BlackRock manger Bob Doll that companies are more likely to buy back shares than invest and hire as they don’t know what policy to expect from Washington. This echoes the consensus we also hear from CEO’s across the country.
CEO’s are paid to take risk. But they won’t play in a game where someone constantly intervenes, changing the rules mid play.
The electorate has finally come to grips with this reality as the key cause of their plight. Thus, they will insist on the rescinding of the worst and then leveling of the rest of regulations; they will insist on a fixed (and lower) tax policy, and finally, they will insist on a non-interventionist administration.
This is a very hopeful development because Washington is listening.
Robert Craven
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