We have moved into the final month of the year.
November overcame the biggest loss for that month on almost two decades.
Most of the recovery was attributed to the belief the Federal Reserve will lower interest rates again this month.
It seems realistic as there is room before the Federal Funds rate gets to a more neutral position.
My concern is that inflation is stuck above 3% and may increase over time.
That leaves less room for the Fed to cut.
Some have said that lower interest rates will stimulate the economy and pull in cash sitting on the sidelines in interest-bearing accounts.
I am one with cash on the sidelines, but dropping rates will not get me to invest in a market that seems over-priced currently.
My opinion means little or nothing as I still subscribe to a very dated belief in value.
At this point, value could only occur with an almost-crash in the market, which I wouldn’t wish on anyone.
The pressure on Bitcoin continues and I’m not sure what can cure the problem.
So much money was made that the next step up seems much harder as the days go by.
It would not take much to send the crypto currency spiraling as margin calls are hit.
You could say much the same about the value of the U.S. dollar.
With all the talk in DC, none of it has really much focus on spending cuts.
I understand that cuts don’t get you elected, but you might get run out of town if the economy spirals downward.
The current administration is like all the rest with the mantra of “Trust Me”.
Seriously, how can that trite expression have any legs left.
Politicians on both sides are only in it for themselves.
That whole service above self has sailed.
We are in the holiday season and most will put off the worry until the New Year.
I will be sending checks to my children to spend on the grandkids.
Doing my part to support the economy.
Personally, I still find myself spending when it really isn’t a necessity.
I am not talking about food and fuel.
My purchases are more for maintenance rather than pleasure.
I tend to find as much or more pleasure in activities.
In truth, I’m trying to eliminate most of past possession purchases due to lack of room or interest.
It seems to me this market has legs left in it through and into the New Year.
We have gotten past the government shutdown and tariffs.
I’m not sure what the news could be that would shock this market and make it sit up and take notice.
The market had quite the selloff last month only to recover yet again.
This has been the case for over three years.
I don’t feel good about where we are, but there doesn’t seem to be a force big enough to halt its progress.
While it will inevitably come, it doesn’t appear close.
This economy is troubling, but inflation, foreign strife, and political fighting are bumps in the road, if that at all.
If you want to see the power of money, look at the concern over climate change.
It’s my opinion that some of the push by big money like Black Rock was from speculation of making vast amounts of money by switching to renewable.
The fact that it could help the planet was nice, but look at the money that could be made.
See how quickly that faded when AI needed energy and concerns about the planet evaporated.
No pun intended.
Never ignore the profit motive or, more simply, always follow the money.
Don’t however become a cynic like me.
