Japan just opened down another 1.7% this evening.  Couple that with the rotation into 10-year bonds, and the continued steady decline in US markets (and don’t forget the bad jobs number), and we are in for one heck of an earnings season.

Just lay low until the market corrects, and be observant of market indicators that come out of earnings. We have suggested before, that Obama has falsified the unemployment data with recent changes to the metric, pushing the numbers in his favor.  His masquerade will only last for a little while longer, we may again  hit significant lows accross the board.

Of course, I don’t think this will translate into the same type of panic on “main street”, as the stock market did get ahead of itself (way ahead) this time around. Valuations are just way to high given the risks that continue to persist.

Obama can take care of a number of them with one solid decision/action, which is to promote conversion to natural gas as our fuel source.  This wold have the effect of stabilizing energy prices, and boosting jobs significantly over the next 2-4 years.  Years 5-10, we could become a net exporter of LNG to Asia, and other global markets.

In any event, long term vision is still there, even though Obama’s short term actions to get reelected have given us a few speed bumps.