The power of the markets

“There is a monstrously large amount of uncertainty and a massive range of possibilities,” said David Mackie, chief European economist at JPMorgan Chase & Co. in London. “A macroeconomic disaster could be averted but only by aggressive policy action” by central banks and governments, he said. (Source: Bloomberg)

My view? The markets will eventually win. The markets will force us to do the right things, the things we should do right now. That we should have been doing in the past several years.

We will be forced to improve our fiscal situation. We will be forced to fix Medicare. We will be forced to fix Social Security. The outlandish pension programs.

There is going to be a point when the markets tell the US and European politicians that there is no more money to be borrowed. That the only way is to pay for the programs we need only if we can afford them.

When the USSR was at Italy's doors, we knew that the way to survive if the Russian came was to take difficult, hard, and complex university programs. To become specialists. Very skilled technical people. And those who did it were always in demand and lived well.

There will be a point when our youth will recognize this truth.

The markets will force us to do the right things. Not the politicians.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.

Disclaimer.The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.