Keynesian Maneuver and Government Cheese

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About this time last year I was convinced we were heading into a bear market. My prediction back then was the S&P 500 would make its way down to 1000. I didn't think it would reach down to 741 as it did in November. I also thought the dollar would rally. It did during the latter half of the year as the energy and commodity trade unwound and massive de-leveraging occurred. The British economist, John Keynes believed government investment in infrastructure and low interest rates are needed to stimulate the economy and avert depressions. I'm not an economist but a student of mathematics and experimentation. We are about to witness the largest experiment of the Keynesian theory the world has ever seen (see how the IMF and World Bank are doing, they are Keynesian products). From a market perspective, I see a trading range all year interspersed with powerful bear market rallies. I believe we will see the S&P test 750 again and 1200 on the high side. I had government cheese in elementary school. Back then I didn't know the difference. I wonder if we should care if the new infrastructure spending on technology has a cheesy taste. Maybe the polyester suits from the 70's will come back too.

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About Paul Lopez

Paul Lopez Paul Lopez is a 20+ year technology veteran whose career has spanned multiple disciplines such as product management, software development, engineering, marketing, business development and operations... read more

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