25 September 2015

SP 500 and NDX Futures Daily Charts - Uncertain Risks

Traits and tendencies often found in the personality pattern that we call character:

         integrity                      justness
         honesty                        fairness
         rectitude                      diligence
         sense of honor                 carefulness
         high moral standards           prudence
         conscientiousness              restraint
         trustworthiness                tidiness
         sense of duty                  willingness to accept blame
         courage                        principled conduct
         intelligence                   foresight
         common sense                   perseverance
         self-discipline                stick-to-itiveness
         self-control                   determination 
         self-denial                    unselfishness
         self-reliance                  seriousness
         self-sacrifice                 caution
         thriftiness                    chastity

Character provides stability and confidence. When character fails, there is uncertainty and fear.

The estimate of US GDP for the third quarter came in higher than expected at 3.9% vs. 3.7% expected.

And so stocks rallied, for a while.  But the enthusiasm for a recovery faded badly into the late afternoon, as people took stocks of the state of the world, and what they can see with their own eyes:  a recovery largely restricted to a few in the ruling class and financial interests, and a global slump of demand.
‘I am sure that God did not intend that there be so many poor. The class structure is our making and our consent, not His.'

Dorothy Day
This passive-aggressive posture towards equities in general and risk in particular is because of the lack of reform to create a sustainable, stable recovery fueled by organic demand for growth based across a broader participation amongst the consumers.

You cannot have it both ways.  You cannot subject the great part of a people to fear, repression, and enforced deprivation on one hand, and expect them to flourish and consume freely on the other.
“Capitalism is contradictory as soon as it is complete [unfettered]; because it is dealing with the mass of men in two opposite ways at once. When most men are wage-earners, it is more and more difficult for most men to be customers. For the capitalist is always trying to cut down what his servant demands, and in doing so is cutting down what his customer can spend… He is wanting the same man to be rich and poor at the same time.”

G. K. Chesterton

We are not a thing meant for the pleasure of another.  We are made for joy, and all the fulfillment that it brings.

Have a pleasant weekend.