There is an avalanche of bad news/uncertainty (which is the same thing to the stock market). What will happen when QE2 ends? What will happen if the Congressional children allow the U.S. to default? Why do Greece, Portugal and now Italy keep getting downgraded? Will the Euro survive? Will the over-built real estate market in China send them into a banking crisis, like what happened in the U.S.? Why have tornadoes done so much damage this year? Is it global warming? Now, on top of all that, another volcanic eruption in Iceland threatens another shut down of airspace over Europe, and airline stocks are getting crushed. It is small wonder the Dow is likely to open down about a 100 points this morning.
Frankly, I'm surprised the market is not down even more. We're still UP over 6% so far this year. Either it is a testament to some underlying strength in the economy, or QE2 is even stronger than we think.
Gentlemen, place your bets . . . on the market . . . and other "controllables," like when the volcano will stop spewing!
