Posted By RichC on November 15, 2013
The U.S. stock market powered forward again today with the expectation that Janet Yellen will continue the easy money policies as head of the Federal Reserve. The Dow Jones Industrial Average (chart above) has investors cheering even as recent bumps attempted to derail the anemic jobless recovery. I doubt the party can continue forever, but until the majority of Americans lose faith in the Fed’s ability to print money out of thin air while keeping interest rates low and still not face inflation, there aren’t any normal economic roadblocks to contend with … equities could go higher. On the other hand, big money managers have seen great returns this year and may just be willing to book profits so they can relax and the holidays.
The big picture isn’t really that rosy. Tax policies are keeping corporate profits sheltered overseas, the administration siphons more money from consumers while they spend inefficiently and pressure for more borrowing and taxing (Obamacare will surely be a drain). More so for all the wasted stimulus efforts only the wealthy are profiting and only a few in the lower and middle class are gaining ground. Good jobs people … where are they? Let’s focus on real growth and policies that create private sector jobs.
I heard a discussion this week on CNBC that was so true: The Republicans dislike President Obama’s economic policies yet their “supposed” 1% rich friends have gained considerably. The Democrats claim they fight for the lower and middle class, yet the current policies are primarily benefitting the wealthiest Americans and are costly for the rest. Again … few jobs and very few good middle class jobs are being created. It seems backwards to me?