Debt Drama
Will this ridiculous saga ever end? I’m simply flabbergasted that this circus is still going on with both sides thinking they are the virtuous ones, while in reality they are simply further eroding the public’s trust in our government. I am embarrassed about both parties, but the “no tax hikes under any situation” crowd is terribly dogmatic in my opinion.
Despite some minor hiccups, it doesn’t seem like the market is being held completely hostage by the goings on in Washington for which I am thankful. Clearly traders believe the situation will be resolved because the consequences spelled out by the likes of Moody’s of a failed deal would be dire.
Corporate America is charging along while these sideshows occur. I am amazed at the ability of many top firms like Apple (AAPL), Intel (INTC), Amazon.com (AMZN), and Cummins (CMI) to post excellent growth in a less-than-ideal business climate. Of the four of these, I think Intel gets the least respect by investors for their performance. In terms of Apple, I shudder to think of what their results would be if the consumer was in better shape. By the way, who sold Apple at $310 a few weeks ago?
Job(less) Picture
I think job growth will continue to underwhelm and the unemployment rate will stay elevated longer than the consensus thinks. More reports are coming out discussing the fact that companies are not hiring workers who have been unemployed for a few months, which I think is an awful policy on many different levels if they are qualified. I believe that there is a serious skills mismatch in this country that will not go away anytime soon and that corporate cash balances will continue to balloon.
I continue to worry about the macro picture, but cannot dismiss the market’s resilience. The fact that the averages are within a few percent of their recent highs is amazing given all the turmoil around every corner. I am tempted to say that the market is dumb and that gloom is imminent, but that kind of arrogance from either a bull or bear is sure to lead to a loss of capital.
Good luck and be careful out there.
Some Random Market Thoughts – 7/27/11 is an article from: 
