The strength of this market is kind of shocking.
Let’s consider some of the bullets being fired right now:
- Cisco laid a major egg of an earnings report, highlighting in particular damage from the weak public sector.
- Disney missed earnings expectations yesterday.
- The US has a Fed chief that frequently gets compared to Bernie Madoff.
- Europe is in full-blown crisis mode again, and thus there are fears of contagion from weakening banks.
- China has been tightening all week, and last night it crashed over 5%.
- The dollar is strengthening.
- The election presages a period of austerity, and some in the new GOP majority are even talking about not raising the debt ceiling.
We could go on.
And yes, the market has fallen a bit this week, but barely. Check out the run since the end of August in the S&P, and look how modestly the decline has been.