We have possibly an action-packed week coming up with congressional testimony from former Obama DOJ chief Loretta Lynch on Monday and ex-FBI James Comey on Tuesday.
On Wednesday US Attorney John Huber is slated to give his update to Congress on his probe into the Clinton Foundation.
Now there is plenty of speculation over the “Locked & (who is) Loaded” comment as to Lynch being ready to speak on the Obama administration’s involvement on spying on the Trump campaign and after the election. Under threat of releasing the declassified FISA documents will move Lynch to be truthful in order not to perjure herself.
I’ll reserve my enthusiasm for this since I have seen this build up before only to be disappointed by the actual event. It could be that Sunday night both or one could decline the congressional invitation to testify and let the committees deal with that in the next few days remaining in Republican-controlled House.
Shutting down the government by not passing the spending bill will just be used as a time suck to slow or stop any House inquiries will be delayed (cancelled) as lawmakers scramble to get bill passed so they can get out of Washington for holidays.
Being vigilant during December will probably have little to do with keeping up with actions and more to do with staying the course despite nothing really coming from the anticipated actions.
Maybe I’m too jaded at this point, but I would like see a boom, boom. I only need two and they can be lower case.
Do you recall the days when markets would pull back when there was a terrorist event in the world?
When investors would at least pause when the fired FBI Director was speaking on Capitol Hill about events and conversations with the White House?
Some of these market participants would even sell when the Federal Reserve raised rates. Speaking of the Fed — the ultimate backstop on falling security prices — it said last week it would begin pulling some $2 trillion out of the markets over the next 2 years or so.
What did we get from the markets? Crickets
These investors used to be called skittish. But they seem to be gone. They have been muscled out by money that seems to know something. There are so many signs that the market is ready for a pull back.
What that something is that the markets know could certainly be helpful to small investors.
However, this is the time market pros say when the “dumb money” comes into the market. Small investors seeing new record highs most days and who have been on the sidelines fearing a repeat of 1987, 2001 and 2008.
I’m of the opinion that you don’t need to catch the last 5% move upwards, when the risk is you could get caught in a 50% downside collapse. It’s not a zero-sum game, you can take some profits and leave some positions for the possibility markets will go higher.