In the hit movie Back to the Future¬† Michael J Fox had access to a time machine, allowing him to go back and forward in time.¬†¬† So what if we had access to a time machine and we went forward in time, just a mere 30 days….. the election and QE2 will be a month old, what will the world look like?¬† With these two issues settled, will knowing what to do with your monies become crystal clear?¬† ¬†

I receive many personal emails from viewers expressing this frustration….”I just don’t get¬†the disconnect between the fundamental news and the market performance!”¬†¬†¬† Dr. John Hussman, who is a terrific mutual fund manager and writes a must read weekly column¬† (see this weeks thoughts)¬† stated¬†this week that “valuations matter…..Though valuations often have little impact on short-term returns over periods of less than a few years!”¬†¬† Could he have also said, elections or QE2 have little impact on long-term market results?¬†¬†

We live in a complex world!¬† I have no idea how the¬†elections will turn out tonight and I have no idea how much fuel¬†the Fed will attempt to throw on the fire with QE2.¬† What I do know is this….regardless of the news, patterns have shown a tendency to create repeating¬†RESULTS for the past couple of hundred years, regardless of elections¬†or stimulus activities.¬†¬†

 

Many feel today (Elections) and Tomorrow (QE2) will greatly impact the direction of the economy.¬† I don’t know what the results will be or how the world will react to the results!¬† I do know this…..Today, a month or 10-years from now, I will remain focused on “Patterns and Price action”¬†and how these tools can help us “inflate our portfolios, regardless of (the news) or market direction!”¬†

At this point in time,¬†many of the major markets are facing resistance right now!¬†¬†Resistance is resistance until broken.¬† IF resistance is taken out, I will follow!¬†¬†If you must own this market, I would do it via the “High Yield mutual” funds I have discussed on numerous times.

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past