bigworld, IBM and Intel reported numbers today that blew away estimates. I'm hoping that AAPL and FCX (two of my holdings) will do the same tomorrow. You must admit that there is a significant dichotomy between global corporations and government debt. The theory goes that if the global economy does recover, more people go back to work and governments reap increased tax revenues from both corporations and workers.
This will help reduce deficits to a certain extent. And I think momentum is building to increase taxes, especially on the well-to-do. As Obama said, he, Obama, doesn't need a tax cut. Neither does Warren Buffett, nor, by implication, practically all rich people. I'd even be willing to pay more taxes myself to help solve this debt problem. If governments are going to spend all this money, someone has to pay for it. I really don't think we should take Social Security and Medicare away from seniors. They get little enough as it is.
That said, I'm planning to exit some of my long positions if my stocks spike up if and when the companies announce earnings. I'm a bit concerned about a sell-off when QE2 ends even though I think that corporations will continue to produce robust earnings. And the December 21, 2012 phenomenon has me concerned as well. I figure if I go to more cash, there will be some excellent buying opportunities somewhere down the road. I just don't see anything slowing down corporate profits, though, unless something unexpected and catastrophic happens in the world.
