I do believe that we are ending the current business cycle which started after the 2008 collapse. Unfortunately, the Fed doesn’t have its normal tools available (such as lowering interest rates) to extend the current cycle much longer.
-John Rothe, portfolio manager, Riverbend Investment Management
The fiscal cliff, sequestration, higher taxes, and a pending budget debate may be too much for overly optimistic investors to handle. Volatility has started to rise and the market is looking weaker:
As I mentioned in last week’s piece, some of the underlying market components are starting to weaken and investors seem to be losing faith that Ben Bernanke and the Fed can keep growth alive in the US economy.
I do believe that we are ending the current business cycle which started after the 2008 collapse. Unfortunately, the Fed doesn’t have its normal tools available (such as lowering interest rates) to extend the current cycle much longer.
