Every day, we read of some new record that has been broken by the stock market and how events that have happened only twice or thrice in the last so many decades have come to pass recently. There are those who think that markets have gone up so high that nothing other than a reversal is possible. Yet there are those that continue betting in the belief that the US stock market is the only game left out there. The Fed itself continues postponing the day of reckoning in terms of the cost of money that the government can print with no restraint, thanks to the lack of obligation to back its printing excess by anything other than hot air.
In this backdrop, we now have a President who has challenged Congress with his bold pronouncements on immigration and some unilateral action, albeit in the real spirit of America and necessitated by the irresponsible apathy of the legislative branch. The reaction of the Republicans has been predictable, and don't be surprised if the confrontation escalates even more and creates a major shut down of the government itself.
Not long back, the market has shown clearly that it is more worried about the turf battles and paralysis in Washington than other business and economy related challenges. But who cares ? It is all a battle for 2016, if not to increase one's own chance to win but at least to deflate those of the opponents by not letting them achieve anything they can brag about.
This is certainly a time when cash is king and a time to prepare a short list of what one wants to pick up at bargain prices and to wait it out. That is my view and the basis of my plans for the near future although I may continue not to let some of the cash stay idle but earn some money through carefully placed short puts. Wish you good luck, if you have an alternative point of view since you may indeed need it! Certainly, this is a very uncertain moment.
