January 29, 2013

Jan highs is high for the year

Doug Kass of Seabreeze Partners was on CNBC recently commenting that he believes that the yearly high has been made in January 2013. There are some warning signs being ignored by the market, such as the fiscal and monetary policy is unsustainable. The US is running trillions of dollars in debt while running zero percent interest rates.

Lower growth, lower stocks valuation is on the horizon. The average middle class consumer is beaten up and income has not kept up with inflation, job insecurity, home price declines. Also the payroll tax raise could be another headwind.