George Bush rides off to the ranch, economy in a shambles (of course he inherited the seeds of this mess from Clinton and some of the same people garnering appointments in the Obama administration) and in his place comes hope and change.Really? Change? Well, maybe in some ways like the ability to communicate and be more open than the sneaky Bush administration. There also certainly seems to be an upgrade in the presidential intelligence level. All good.
But CHANGE we can believe in, economically speaking? Give me a break. Despite the counsel of the man credited with taming inflation (providing Greenspan with the wellspring of sound policy off of which he feasted and self-aggrandized for years, Paul Volcker, Mr. Obama is set to 'stimulate' the economy using the textbook from Keynesian Economics 101.
As part of the plan, we have the recent infrastructure spending announcement. I remember the day CSCO got the Obama infrastructure pump and decided to watch the gap and thought I might tuck away a little bit of this tech giant if it filled. Since I am still bullish for a hope pump (AKA bear market rally) I added CSCO yesterday to go with my Mister Softie position. Here is the chart showing the target.
I totally disagree (master of the obvious strikes again) with macro policy, but that is nothing new. This mess is what it is and they are going to try to pump their way out of it. As investors, traders and/or speculators we make the best of it. I can envision getting short human hope one day down the road, but for now it may spring eternal. Happy new year!! At least until spring perhaps.
