Tuesday, November 20, 2012
Just a couple premarket notes....
Bespoke - US bank and broker default risk. I'll save you the time: there is no risk. Thus came my suspicion that last week's selloff was just a plutocratic snit and not justified by any real danger in the market.
Biiwii - Junk to investment grade says bull market lives. Again, as above. And this even with the caveat that any ETF with yield would also be sold off in this market, because as I said before, it's just an anti-taxation snit.
Things reversed since Friday afternoon, since the American plutocracy interpreted the politicians' statements as meaning the dividend tax increase was off the table. If it turns out they're wrong, watch the markets sell off again in earnest. Because the plutocrats are stupid enough to desire to hold money in cash instead of collecting a dividend.
Because snits make you act counter to your own best interests.