What Will it take to Get Consumer Confidence Back ?
As the stock market stages for a move down to the value area of support (S&P 890 to 930) it might be a good exercise to think about what will allow things to change at that point. Again the word Change and elections is coming back into focus. Ironically, regardless of what happens in the elections, the market will make a major move to the upside because it will be starting at value and the reforms are in place. The difference is what happens after that in the 2013 to 2016 period.
If the country wants a positive outcome for that crucial 2013 to 2016 period the following three statements apply:
1) First the country needs to believe that the same group of morons that created the deficits and bubbles in the good times don’t get back in office this fall. That includes all the Greenspan-Bush Republicans and all the Rubin-Clinton Democrats.
2) Second, the country needs to believe that the new morons, the Teapartyers, don’t get into office and apply their brand of new voodoo economics.
3) Third and most importantly the country needs to open its eyes and look at what e prior to 2007 and see how the new Financial and Health Reforms are building a base for a new era.
If, on the other hand, the country doesn’t get it and does the opposite, act accordingly. Prechter and the Elliot Wave crowd would like to see there long-term objectives met on the downside in that 2013 to 2016 period.