I’m attending an investment conference this week in Baltimore, and the mood is dour indeed.  However, world stock markets are apparently not so dour. The U.S. was up strongly yesterday, just because it was almost over.  Asia was also up strongly overnight.  The Futures market indicates a good day in both Europe and the U.S today.  Stock markets almost invariably go up– when uncertainty goes down.

I’ve been arguing that there are three wet blankets on the markets: (1) the election, (2) the Fiscal Cliff, and (3) the European financial crisis.  One wet blanket has now been removed, but we find the second wet blanket or Fiscal Cliff is now even wetter than expected.

My take is that America lost the election, not because the President was retained, but because gridlock was retained.  Some analysts are predicting it may even be worse, which is actually hard to imagine.  The inability to compromise is strangling this country.  We have an obligation to thank our elected officials whenever they compromise.

There is a train coming at us, and I don’t care if we get off the right side or left side of the track!