We believe that a new term will be coined to describe what will evolve after this election “Grass Roots Capitalism”. This description of the change that is going to come will involve a number of things:
1) First it will involve getting rid of the old capitalism that people like Jack Welch whose book is a good characterization of the old movement, “Winning at any Cost”. M & A groups like Blackstone that tear up companies and outsource jobs, and Hedge Funds that don’t hedge will be less popular.
2) It will be time to start companies; the best time to start a company is at the bottom of the long 72 year cycle, around 2011, not the top as in year 2000. Just look at the great companies that were founded and still exist that were put together in the 1929-1933 depression. Even Joe the plumber who never saw anything close to $ 250,000 in earnings, could make a play here.
3) It will be a time of responsible government. Congress will find out that Obama is in charge and vetoes will be flying like never before as Senate and House Democrats find out that governing is not about old relationships.
4) And it is not about an African-American movement. Change had to come from someone who wanted change, and someone with a minority heritage would be the logical new leader, how many old fat white guys want change? But that root is the most important point. Governing and leading will be for all Americans, the United States of America.
As to todays markets.
The Stock market represented by the S&P 500 will trade for the moment in the 940 to 1040 range with 990 as the swing point. General direction is higher with 1240 the target. The long dollar and short T-bond positions should work ok. The long gold position could be a sell here but we are inclined to wait and see what occcurs over the next few days.
7:13 AM CST