HAPPY DAYS ARE HERE AGAIN – AT 10:02 A.M. ET: Or maybe not. It is perfectly obvious that major actors in the American economy are displeased by the election results, and apprehensive over the future of their companies. A number of economists are predicting trouble ahead, especially as the impact of Obamacare and a slew of new federal regulations takes hold. From CNBC:
The markets are going to go into meltdown soon, so expect stocks to lose 20 percent of their value, Marc Faber, author of the Gloom, Boom and Doom report told CNBC on Tuesday.
“I don’t think markets are going down because of Greece, I don’t think markets are going down because of the ‘fiscal cliff’ — because there won’t be a ‘fiscal cliff,’ ” Faber told CNBC’s “Squawk Box.” “The market is going down because corporate profits will begin to disappoint, the global economy will hardly grow next year or even contract, and that is the reason why stocks, from the highs of September of 1,470 on the S&P, will drop at least 20 percent, in my view.”
Faber, who is known for his bearish views, cited tech giant Apple [AAPL Loading... () ], a company whose disappointing earnings have caused its stock to fall 20 percent from its September highs and 14 percent in the past month.
A series of poor quarterly earnings from corporate giants such as Amazon.com [AMZN Loading... () ], McDonald's [MCD Loading... () ] and Google [GOOG Loading... () ] have hurt investor sentiment in recent weeks.
COMMENT: I like to chat up local retailers, always a good check on what you read in the press, and they pretty much all say the same thing – that people are reluctant to part with their money because of worries over the future. The re-anointing of Barack Obama will not ease those worries.
November 13, 2012