Embracing Bad News

By -

Just to recap………..

  • The presumptive next president has already made plain his plans to
    substantially increase taxes, including a large increase in capital
    gains taxes
  • The head of the federal reserve has (finally) stated what would have
    been unthinkable for him to say a few months ago: that it's likely
    we're in a recession
  • The unemployment figures came out, and joblessness shot higher than
    most expected. Payrolls dropped 80,000 people, marking the third
    consecutive month of a shrinking job market, and the unemployment rate
    leaped to 5.1%
  • Congress is going to approve plans to plunge the nation hundreds of billions of dollars into the hole to bail out investment banks and low-income borrowers that made foolish financial decisions
  • Every economic indicator coming out shows that nation's economy is heading downward

……..and with all this, the Dow is up 1,000 points over the past couple of weeks and the GLOBEX is in the green before this morning's opening bell.

It sounds like we've returned to the insane illogic of bull markets past. Maybe GS needs to bring Abby back. The brainlessness has returned (cue Beanie……….).