Words ought to be a little wild, for they are the assault of thoughts on the unthinking
- J.M. Keynes

Tuesday, 17 January 2012

S&P500 - One for the patternistas


Is this the start of another beautiful rally? The chart certainly looks similar to the start of the last bull run.
Fundamentally the US economy is resilient and one of the most balanced (mix of agriculture, manufacturing and services) amongst developed nations. Consumer debt overhang and the housing market will slowly sort itself out. Capitalist systems with flexible labour and product markets have a history of sorting themselves out without help from Ben Bernanke and the "We gotta do some serious policy intervention or this sucker is going down" crowd. Apart from ill thought policy intervention the other major risk is politics. The 1% on the left masquerades as the 99% and the 1% on the right is unintelligible.

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