Clearly a few things can be known sure... Oil will stay higher than is comfortable... Rates will likely keep going up to "protect" the dollar from the war spending...Shades of 1968-1971. And the bond market will continue to "price in" the new paradigm at the FED.
EXACTLY HOW THIS IS A FORMULA FOR MULTIPLE EXPANSION AT THE NYSE ESCAPES ME AT THIS POINT...
It is not unusual for stocks to tread water for years...with false dawns every few months...and doomsday midnights as well. Very likely the easy money has been made on Wall Street and the future will look more like the 1970's than the 1990's.
There could be a hue and cry for a better social safety net for American workers...AFTER the coming elections.
And, a slow and painful re-building of the nation's social and economic infrastructure could be THE story of the next few years...now that the looting and asset infaltion is over.
Will there come a day when folks no longer follow stocks everyday...? For sure...stocks were only of interest to brokers and lunatics in the late 70's.
The current lull in political and economic rhetoric could be the calm before the storm after the November elections...people are not happy with the current situation...and big changes will be demanded from the new Democratic Congress.
So, history will very nearly repeat... IF THE NEW DAWN IS A PROGRESSIVE/LIBERAL POLITICS...THE DARK NIGHT OF LOWER BOND PRICES AND HIGHER "HISTORICAL" RATES IS SURE TO COME.
THE ERA OF BIG ASSET BUBBLES IS OVER...
