In his most recent piece of surgical brilliance, Greg Weldon laid out the numbers in simple fashion, revealing just how bad things have become in the Sceptered Isle.
Subjectivism is the philosophy that reality is what we perceive to be real and that no underlying, true reality exists independent of human perception. In other words, the nature of reality for an individual person is dependent on that individual’s own consciousness. It follows that each person experiences their own reality that is not shared with others.
U.S. demand for natural gas has been fairly flat for the last 10 years, regardless of price. Of the four major uses for natural gas ((1)residential heating, hot water, and cooking; (2)commercial heating, hot water, and cooking; (3) industrial demand; and (4) electricity), only electrical use has been growing.
With the unemployment rate in the high single-digits and with national average gasoline prices approaching last years highs of $4/gallon, one would think that the consumer discretionary sector, which lives and breathes by the spending habits of the US consumer, would be struggling. However, nothing could be further from the truth.
Implicit in much economic comment of late is the assumption that, although the key monetary and fiscal policy decisions of recent years may fail to quickly restore healthy, sustainable economic growth, they are, at least, a way of buying time and that, eventually, things will improve of their own accord.
Besides volume and chart patterns, the most important indicator is price. Of late, we have seen price hit new highs for the S&P 500, NASDAQ Composite, and the Dow Industrial indices. We’re missing new highs in the Dow Jones Transport index and in the Russell 2000 index, setting up a possible divergence.
This morning’s economic data is giving investors the clearest possible evidence of divergence in global economic growth outlook, with the U.S. economy decoupling from Europe and China. We have another better-than-expected read on Initial Jobless Claims in the U.S., while readings of the manufacturing sector in China and Europe show contraction.
A growing number of Americans are frustrated with the way in which their economy has been managed and are becoming increasingly concerned about future measures the governement may take to keep its coffers full.
We see the S&P 500 ending 2012 at 1,400 with a mid-2012 dip to 1,200 followed by 1,600 around 2013-14 on a P/E 16x normalized, albeit sharply slowing EPS. By mid-2012, we anticipate QE3 in response to deflationary shocks. Beyond mid-2012, we expect large cap growth equities to lead the S&P 500 higher with financials fueling (and capping) the S&P rally at 1,600.
It's very simple: either we have due process and everyone is equal under the law, or we have an authoritarian regime that is only nominally democratic for PR purposes.