Calling the Crash

I saw economic dislocation around Nashville and described it in yesterday's column. I sensed that US markets might not have much upside in the immediate future. Sadly, American stocks did indeed plummet yesterday. I see no reason for optimism today either, but I will say certain stocks are apparently undervalued. For those stocks to really rise, both the US House and Senate should be in Republican control to help rein in the blunderer-in-chief throughout the rest of his term. If Yellen tapers off quantitative easing, it would also suggest renewed confidence by the Fed that markets no longer need propping up, thereby allowing market forces to return and permit the natural rise that will eventually happen when the heavy hand of government stops meddling and warping our markets. Real recovery will not be easy as the hole our politicians and central bankers have dug for us is deep, but we are a resilient nation. It is folly to leave our children and grandchildren unrecoverable debt, and it is equally stupid to continue to devalue our own currency. The solution is simple- have the government spend less, regulate less, and tax less- then we will all have a more prosperous future.