Market Sell Off Continues

The markets returned all gains made from June in a span of a week as fears about whether the U.S. can actually come up with a functional compromise continue.

What's also probably happening is people taking in their capital gains now at these rates before rates go up.

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"I have a feeling that the great global economic tensions will snap some time in the second Obama term and we will see another crash similar to the 2008/2009 debacle. Disaster looms from both European (overleveraging, political strife) and East Asian (overly dependent on exports and state subsidies, unstable totalitarian regime and heavy handed central planning in China) economic theaters. But that's maybe just wishful thinking on my part as my intention is to be be a net buyer of stocks during the next decade, so lower prices and crashes will be in my favor.

Hold at least 30% of your investable assets in cash in order to take advantage of a buying opportunity when the market plunges. Keeping cash in this manner is thus an excellent portfolio protection tool."

30% is high, which shows you where investors are leaning these days. Usually the rule of thumb is to set aside 10%.

I tend to take this approach. Stay on the sidelines. See how this plays out. Obama's Presidency may lead to significant drops; this means buying opportunities.

The Republican outlook is what works on economic policy; which is why Democrats will employ them.

Speaking of things not being what they seem, from the same article:

"Bill Clinton was the most ruthless exponent of the neoconservative economic policies. Crushing the poor with the euphemistically named Personal Responsibility and Work Opportunity Act, Clinton attacked head on the social safety net built for decades, and with the repeal of the Glass-Steagall act, guided by former Goldman-Sachs CEO Bob Rubin, his Treasury secretary, he tore down the wall separating commercial from investment banking, thus opening the way to the 2008 subprime mortgage financial crash, the worst economic storm in America since the thirties from which the world is reeling even today...."

Shhhh!

Conversely, Bush only really became a neocon after 9/11. Prior to that event, recall that Bush was basically a compassionate conservative with his Millenium Fund, No Child Behind, calls for reform on immigration, bail-ous, TARP and spending on Medicare. Only later did he hand over the reigns to the neocons on foreign policy and mused with privatizing Social Security.

But his detractors focus on tax cuts and WMD's in Iraq often ignoring Democrats believed Hussein had them also which is why they voted along with the GOP.