At Jackson Hole, Ben Bernanke said nothing new. Analysis indicated that the economy is disappointing, and the FOMC is ready to act with another round of easing if needed. The continuation of buying assets, bonds and mortgages, was also addressed- nothing unexpected. We'll have to see what the FOMC decides in September.
Eyes are pointing at the ECB meeting in Frankfurt. Will Greece leave the Eurozone, and is anyone going to help Spain and Italy? Mario Draghi will unveil a bond buying program that will provide that notion. The market will decide whether or not this is a move in the right direction on Wednesday.
On another note, Mitt Romney had a successful Republican National Convention last night and might force president Obama's hand. Key notes in his speech were having the advantage of being a business man, promises 12 million jobs, and intends to balance the budget in relation to the current debt crisis. It sounds very "Republicanesque" to me- efficiency over equity. However, this is country needs someone that can fix the exponential growth of national debt which looks to hit the ceiling somewhere in November.
I'm going to be a little more indirect about my portfolio, and discuss heavily on macroeconomics. If you'd like to know how I'm doing, talk to me directly. However, I'll provide my outlook for those who also trade and view my blog.
It doesn't look good next week for the indices. It will be flat week, with the mean on the negative side. After the ECB interest rate announcement, the markets pare losses. Based on 83 years, September usually isn't a good month for the stock market. Good thing I'm a bear, and I welcome a correction.
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