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-- Posted Wednesday, 3 November 2010 | Digg This Article | | Source: GoldSeek.com
Rick’s Picks Wednesday, November 3, 2010 “Phenomenally accurate forecasts” The polls don’t close for another three hours, but we’ll go out on a limb with a prediction that the Dow will rally at least 175 points when stocks open on Wednesday morning. The exuberant reaction will be a variation on Barack Obama’s Hope and Change-inspired landslide in the 2008 election. Now as then, revelers will be so worked up about the very prospect of change, any kind of change, that they won’t much care about the details. But they’ll care about them soon enough, and that’s why we’re also predicting a Thursday morning hangover; for at the end of the day, it takes just as many Republicans and Tea Partiers to screw in a light bulb as it does Democrats.
Mind you, even though there isn’t ultimately much difference between the two major parties as far as how they govern, there are differences enough that we’ll be rooting, sight unseen, for anybody-but-the-Democrat in virtually all Congressional races. Running as a Socialist Worker? No Problem-o. Symbionese Liberation Army? You can count on my vote. La Raza? Where can I find your name on the ballot? Tupamaros? Sure, but please don’t forget me when the repeal of Obamacare comes up for a vote. Conserving Stupidity Considering the stakes, traders showed relative restraint on Wall Street yesterday, presumably because they didn’t want to deplete their reserve of stupidity before the election results are out. They needn’t have worried, however, since no human trait save greed is in more abundant supply on the Street than stupidity. Assuming stocks rally sharply, the pundits will seize on this as implying that the mood of America had changed. When the rally sputters out shortly thereafter and reverses with a vengeance, however, the talking heads probably won’t know what to say, so we’ll say it for them: The Republican landslide is not going to change much of anything, particularly the irresistible strength of a credit deflation that has gripped the economy like a noose. To those who believe that a Republican majority, even in both Houses, can turn the economy around, we say, Wake us when we can sell our home for its appraisal value.
*** Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. There is a substantial risk of loss in futures and option trading, and even experts can, and sometimes do, lose their proverbial shirts. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2010, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Wednesday, 3 November 2010 | Digg This Article | Source: GoldSeek.com
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