Dazed, confused by budget talks, market swings
We come into this session bewildered by fiscal cliff negotiations and betting the market is set up to fall.
Could it be that the U.S. economy is so smoking hot that we don't need to worry about higher taxes for all? Maybe the defense budget doesn't matter as much because everyone sees the profligate nature of the Pentagon, with its ridiculously expensive fighter planes. Maybe the employment benefits don't mean much because people are working off the books anyway. Maybe, with all the little charities and state programs out there that can make up for the federal dollars, we are wrong to be so fretful. Maybe it's all made up by the media -- and, if we didn't know any better, we'd see the changes as mild and realize the whole thing is overblown.
Look, if you are not wondering about these sorts of things, I think you must be brain-dead. Thursday's half-decent rally, coming in the face of horrendous retail numbers and a lack of progress in the talks, makes us feel that the whole thing doesn't matter. Either that or, after the debt downgrade, the public has just become conditioned to believe the consequences aren't meaningful, or that they will be avoided. Or, at least, they've been made to feel it has nothing to do with the stock market -- no more than how much the now-evident China expansion has to do with the Chinese stock market.
Think about it. In the span of a day, we started by thinking there was definite progress, and then went to thinking there was no progress. Then, by the end of the day we came to this realization: Not only was there no progress, but things have grown worse -- maybe much worse -- with a proposal from the Democrats that basically says, "Taxes are going up and benefits aren't being cut." I mean, Thursday was a day when everyone actually seemed to throw in the towel. President Obama's game plan was very old-fashioned tax-and-spend, and the market lapped it up.
So we come in here Friday, dazed, confused and betting that the market is set up for a fall.
Yet it's very rare that we see a tape that allows you can get off a short like you can here. Perhaps the buyers are propping stocks up; it is the end of the month. Or perhaps they mistakenly believe, now, that the sides have grown farther apart -- that a deal is in the works for the weekend.
I'll say it. It makes no sense to me.
Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust.
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Decent advice RF, but more fitting on the Blog...Top Stock...."55 and has 100K to invest for First time in their lives.."
Some discussion going on now or just recently...
Too many Steve's on the Board anymore...You have to use something different...?
Curious about the Corporate Welfare the last few Years...Have you seen them create many jobs ??
Same with the Rich and Elite...They will not invest in Jobs or America, until forced and they know they have to use the Hoards for some write offs...
If they run off-shore with it, go after the tax if they are Americans....Then kick their azzes out.
The fiscal problem could be fixed easily if we had a flat rate tax for each individual and business without any loopholes or deductions.
I know Cramer would not like this as he and his rich friends would not like being taxed or get out of paying taxes.
America the largest DEBTOR NATION. Does this not make you sad, cringe, lose your mind and pride. ============================================================
No what makes me sad, cringe, lose my mind and pride is when I have to read your boring post.
Once again corporate profits are at historical levels and the rightwing whacks continue to tell us we need to keep the corporate welfare in place.
Question to all you wingnuts when do you suppose the jobs will be created by your creators? How much more wellfare do they need before they kick in that job creations all you whacks speak of.
I never said they should not get their pensions.I said they should get it at 62 or 65 like the rest of us.This would also limit the double dipping thats rampant.
next time up
As you can see, debasing the currency to pay for public works, social programs, and war as a pattern throughout history. It always ends badly. I see the stagflation coming, count on it.
Number 1 things to do for all people all of the time: Get our of debt!, Don't get in debt again!,
Save up lots of money so that you don't have to get in debt again if there is a catastrophe.
Little less two(2) hours until the close...After hours.(no report)
Asia was exuberant over night...Indices nicely gained.
European Bourses....Floundering, eventually finishing flat.
Oil up around $89 per.bbl.
Gas down in some spots Regionally..
PowerBall winners maybe coming forward in Missouri, News at 6 and Eleven.
U.S. Markets looking like North Sea Icebergs...The Ocean may go Flat by 4 @ the Close.
Obumpa on Happy Trip...While Beener frets and stews.
Retail and REITS up a little or holding their own..
Some oil/gas down. Some energy up.
Gold has been trending down since Thanksgiving....Some miners follow suit.
Auto Manufact.....Up a little.
Yum Brands...Big loser in the Restaurant Biz...Forecasts. (PizzaHut, TacoBell, KFC)
More after the close if any big changes...DON'T Expect Much....Time for nap..
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What does the country have to do with the price-to-earnings ratio of the S&P industrials? From here on in, everything.
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