HRH

His Royal Highness and Her Royal Highness (speaker of the house) are going to have a tough go at it the next two years. There is no centrist opportunity or understanding by them....assume gridlock...which would be a negative...there is far too much work that needs to be done...and will not get done...debt under that circumstance becomes unmanageable....China.. in the news all week with regards to QE2 is just the beginning. Debt and currency wars will be the norm.

The market after an extraordinary run this past nine weeks is getting near a short term top....most are still not in the markets. Maybe the market skids sideways for a bit with a bouncing dollar and additional patience towards possible new tax codes.

The rest of the world now is out performing the USA equity markets. South Africa +29%, India +29%, Hong Kong +29%...USA only +9%. One risk/ challenge is the fact so many markets are all in sync with one another.

Oil stocks are up only +7% in the past 12 months and they are the worst performing subset to the S&P 500. They are the least expensive and most under owned...with crude at 52 week highs the stocks have a lot of room to the upside...like the gold stocks have followed the bullion's price. The WSJ suggested shortages of diesel fuel emerging in China. Smart research suggests shortages of crude oil supply by Q1/11. We remain over weighted in all things related to hydrocarbons.

Zero interest rates are killing pension plans, savings accounts and the senior class.

It is tempting to try to trade this stock market...bull markets do not let you in once you are gone....so traders are giving a lot of money away right now.

"Today is a gift. That is why they call it the present," said Eleanor Roosevelt.

Danny Boy seen here enjoying and extra ordinary autumn.