Just Asking

Thursday, February 04, 2010

Bleak Stock Market Forecast

Have you noticed that the stock market is declining this year?

I think the trend will continue downward for months, no matter what the Democrats do.
If they raise taxes, then the market will cringe and drop.
If they keep on spending, then the market will drop because the debt burden is rising.

If they cut spending to reduce the deficit, then the market will drop when the unemployment rises.
If they cut taxes, the rising debt burden in the short term will send the market down.

I recommend the latter two actions for the long term, but in the short term, why would the market rise now?