One Factor Market
Of the 16 ETF’s, 16 commodities, and 5 major stock indexes that I follow, everything other than bonds and the dollar are up since September 1. Ben got his way through the speculators. Now we will find out how trickle down from high copper and oil prices will increase employment and GNP.
2011 will be the year for surprises and three areas will probably predominate. Municipal and state finances, Fed control of interest rates and the internal makeup of the Fed, and lastly the deficit hawks in Washington will feed turmoil into the markets.
On the positive side housing and employment should improve a little into mid-year.
And the most interesting thing to watch in 2011, which major bank or bank lobbying group will Chris Dodd go to work? That will really make us feel better about the financial regulations which got watered down.
We will elaborate more next week on these and many other issues along with a new format for the blog.