Drink the right Kool-Aid

Too many people take in the wrong information or do not digest the right information flow....or are not looking at all.

People chase emerging markets because they are going up faster than the domestic markets. People chase hedge funds because the press says they are only for the rich. People chase private equity because they are willing to bet someone else will pick stocks for them. People want to have taxes raised so the government will take care of things for them. People want to short the market because they think the USA is finished.....talk about crowd theory....

Go see Live Free or Die Hard....great movie.

The Five things that could derail this market:

1) Oil at $100/ bbl.
2) Water scarcity equals higher prices for food and shortages.
3) Higher taxes as Congress wants to hit the successful working class and corporations.
4) A major hit to the leveraged crowd, hedge funds , derivatives and debt.....
5) A Cyber attack on the new digital economy.

It is not going to be:

1) A correcting China
2) Iraq
3) Housing
4) The USA consumers
5) Earnings 2007

The public has yet to enter the stock market domestically...they are now trying to sell their homes they bought in the past 36 months (buy high sell low.) They will chase this equity market higher into the elections next year......thinking the left will save the day....

Danny Boy seen here looks at the general ledger and sees assets appreciating faster than liabilities.