Laughing Joe

by JDH on October 13, 2012

I didn’t watch the U.S. Vice-Presidential debate this week, but from what I understand from the news coverage, Joe Biden was laughing, a lot.  I have no idea why he was laughing; I guess government manipulation of the economy is funny.  Excessive government isn’t just an American disease; it’s a world-wide phenomenon.

Venezuela re-elected Hugo Chavez this week.  What’s up with that?  Abject poverty, and yet the people love him?  Or it was all a fix?

The Nobel Peace Prize goes to the European Union?  A quasi-government organization that has squandered Europe’s past on more bureaucracy for the future?

No wonder Joe is laughing.

The markets, however, were not laughing this week; here are the gory details:

TSX down 1.75%

S&P 500 down 2.1%

DOW down 2.07%

Gold down 1.25% (although still up 12.16% on the year).

Does the negative action last week imply that we are at the start of a prolonged downturn? Hardly.  We are in a manipulated economy, and the election is a few weeks away.  Now would be the perfect time for the market to go on one final upswing.

Just as we had an amazing jobs report a week ago, bringing the unemployment level under the magic 8% mark, a new high on the Dow is not out of the question.  Expect continued strength over the next few weeks.

Of course after the first week of November a big crash is not out of the question, but that’s a few weeks away.

Gold also appears to be be building a base, so I have no concerns about that investment for the future.

Beyond that, I have nothing of note to add to the discussion, so we sit, and watch the laughing.

Thanks for reading; see you next week.