About nine months ago, I suggested that US stock markets weren’t pricing in any geopolitical risks, with investors laser-focused only on domestic matters. At that time, the Dow Industrials were up about 30% from their March 2009 low.
Well, some 2,300 points later on the DJIA and up another 27%, the geopolitical hazards haven’t abated, and if anything have only mounted further.
Todd Harrison hits on it in a MarketWatch piece:
Social mood is tenuous at best and deteriorating at worst. As the great divide continues to evolve — red states vs. blue states, Main Street vs. Wall Street, haves vs. have nots — societal acrimony has evolved into social unrest in some parts of the world, and economic hardship is pointing an unfortunate needle towards geopolitical conflict.
Take heed, citizens. Take heed.
-John Shipman
10 reasons why this is not a bull market
http://tinyurl.com/y9epu2aFor all our visitors at the beach from March 27 to April 7, 2010.
Due to the holiday and other business activities postings at the beach will be lighter for the above dates.
Articles will still appear so please keep visiting.Thank you. May every trade you make be a good one until I return
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