Remember when “no news” was “good news” and “good news” was “great news?” Today, “bad news” has become “good news” as our lame economic recovery induces encouragement and support from the Fed. And today people talk about how 40 is the new 30, or 80 is the new 50. The only such analogy that makes any sense to me is that 75 is the new 65, as this country’s retirement age continues to, well, age….
It has gotten to the point where even the bulls want each data point being released to be worse than the one before, in the hopes that things will appear bleak enough to spur Fed Intervention by way of QE3, etc. At what point, though, do they just say “Subject does not respond to stimulus?” Today we heard that there was ‘dissension’ within the FOMC, with “a few” members looking for some form of QE3. However, the consensus was that things are not bad enough to warrant urgent action; the market reacted negatively at first. But is the market’s negative reaction a sign that it wants more urgent action? And is that good news?? The market responded to that notion by rallying into the close.
At the end of the day, money has to go somewhere. Especially considered in relation to fixed income assets, we like the stock market for anyone with a moderate- to longer-term investment time horizon.
Have a great week!!
Adam B. Scott
Argyle Capital Partners, LLC
10100 Santa Monica Blvd, #300
Los Angeles, CA 90067