To some the Capital Markets may seem mysterious and maybe even schizophrenic at times, due to the sudden frequent change of character.
Not Really!
The Capital Markets are very intuitive, insightful, but often overly dramatic. As we mentioned in our Trifecta post earlier, participants of the Markets now have a lot on their plate as they deal with several different possible structural changes.
Bernanke is getting more support as the end of the month deadline approaches, which in our opinion is good news. (We think stability in offices is a good idea.)
Today, we add one more worry for participants, as there have been rumors of an aggressive speech at the State of the Union tonight. In our opinion much of this rhetoric is overstated and will be forgotten in just a few days. Even with the passing of some of these worries, Capital Markets may feel a hangover of sorts as many global markets have taken their cue from our land and become squeamish themselves.
Tune in tonight and keep an eye out for any decided changes from earlier views. If there are, we will update you accordingly.
Have a Great Day!
JK