(As of 7:30 am pacific)
Yesterday’s surprise market drop,
despite some very positive economic reports, raised red flags that all other
news besides a resolution to the fiscal cliff is of little importance to
investors. Today we see a continuation
and even acceleration to yesterday’s declines.
Oil and gold are down big as are most commodities and a disturbing ‘risk
off’ scenario is taking hold. The dollar
is stronger as investors flock to safety.
Home sales news added fuel to the fire. Recently positive news was
dampened by weakening home sales and price declines. As we approach year end it is getting more
apparent that a ‘lame-duck’ Congress may not have the time or the desire to
solve the problem before year-end. It
could be a rocky road for the next few weeks.
