The financial markets are a little light on news

You may have noticed that I have not posted yet this week.  Truthfully there really is not much happening in terms of the news flow.  Yet despite that the financial markets are at, or very near, their yearly highs.  In the past you may remember that I have commented that a rise in the financial markets (an effect) without positive news (a cause) is worrisome.  In this situation I have to say I feel differently.  Why?

I feel differently because the rise has been minor.  We are talking about 100 point rise at most.  The attribution for the rise is not really that important.  But my hunch is that investors, both professional and amateur, are starting to deploy some of the cash that has been sitting on the sidelines for almost 2.5 years.  Maybe, just maybe, we are at the precipice of inflows into the stock markets.  For now, I like the metered way in which the flow is coming.  It isn’t spastic, desperate for return, buying.  It seems to be metered and cautious.  This I like.

What will be interesting to see is just what the financial markets do after next Tuesday’s elections.  It seems fairly obvious that the Republicans stand to win Congress.  That will likely result in a very gridlocked Washington for the next two years.  But despite the fact that history shows that returns are higher, and significantly higher at that, during Democratic presidencies, investors tend to like the idea of Republican presidents being in office.  So my thought is that we will see a rise in the financial markets just on that alone.

Looking slightly further ahead, the Holiday shopping season is about to kick off just after Halloween.  What happens there will be very, very telling as to the mood of the U.S. consumer.  But for now, the financial markets are a little light on news.

Jason

P.S.  The website is generating about 5,000 hits per day!  Ah, the power of television.  If you haven’t checked out the videos of me giving interviews last week then point your browser at either the “Press” or “Latest News” sections of www.jasonapollovoss.com.  And if you haven’t purchased a copy of The Intuitive Investor: A Radical Guide for Manifesting Wealth yet then I highly recommend that you do so.  In most financial transactions, either the buyer or the seller comes out ahead.  In the instance of my book, I know that you, the buyer, will come out ahead.  Just one of the points in my book will much more than cover the price of the book of $24.95.  Click here for the book: www.jasonapollovoss.com/web/book/  Ciao.