Pessimism has taken a blow and has been costly over the last several trading days.
Over the longer term I think a significant rise in inflation is inevitable and not factored in the market properly.
The US Ten Year Note has been on the move, and the US Dollar Index has also been climbing overnight.
There is no warning to exit the stock market, but be aware the landscape will change.
Although indices were flat for the week, that is exactly what we need for better technical conditions after the dips.
The market is concerned that these taxes would trigger a rush to lock in gains before possibly higher rates went into effect.
Don't fear the taxman, view this one as an opportunity, not a penalty.
This is a perfect time to make sure you haven't strayed too far into the mainstream, which has been the wrong trade for well over a year.
It may be that major changes will need to be made to make this legislation palatable enough for passage. Stay tuned.
These names in diverse industries have suffered from tax-loss selling and offer 'bounce back' potential in January.