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Wednesday, April 7, 2010 as of 11:14 AM ET

The Casone Exchange
  • December 7, 2010 03:42 PM UTC by Cheryl Casone

    Best Guess: Fight!

    Investors find themselves in the middle of a political fight.  As I sit here the Dow, Nasdaq, and S and P 500 are well off session highs. What I find comforting is that the markets have risen this year, and this month, despite the FIGHT that continues in Washington over spending, the Bush tax cuts, and deficits.  It is my belief that we will end the month of December to the upside, with decent gains for the year.  BUT it will be 2011 when we’ll see the resurgence of the markets in a real and meaningful way (i.e. without major market volatility.)

    Investors have enough economic worries and earnings concerns on their minds, it must be frustrating to try and make financial decisions based on the whims, words, and fights that seem to make up Washington these days.


    Here is some Best Guess action to fight about….



    The European Debt crisis has taken center stage again with the concerns last week over Ireland which was met with an European Union approved $113bn bailout.  Now focus and investor talk has shifted to Portugal and Spain.  The lesson I’ve learned from watching disputes in the world of sports between players and owners has taught me that when millionaires fight with billionaires, it’s a safe bet to be on the side of the billionaires.  In the financial markets, when the US banking system faced billion dollar problems, it was the trillion dollar government that stepped in to prevent a collapse.  So please take caution those investors that wish to position yourselves for a massive disruption in Eurozone yields and arbitrage plays among the EU members.  While the problems and challenges are without question large, the resources available of the ECB and IMF to avoid turmoil or threats to the Euro are larger.  There might not be a quick fix, but don’t expect things to get out of control either.


    This latest insider trading scandal sweeping Wall Street should further convince retail investors that the game is in a lot way rigged in favor of insiders. Always has been always will be. That being said, it should persuade them to take a longer view of their investment strategies, ie., index funds as espoused by my Wall Street hero John Bogle, rather than trying to compete with the big boys.




    I predict the bush tax deal will fall apart! And key changes will be made that will raise taxes on over-$1mil earners.


    Wikileaks is about to release its Bank of America documents, the Federal Government just sold all its shares in Citigroup quote “By selling all the remaining Citigroup shares today, we had an opportunity to lock in substantial profits for the taxpayer and avoid future risk,” What does the Feds  know we do not?



    Markets tick higher in 2011 as corporate profits improve, has nothing to do with Washington.

Jeff Daigle

Cheryl, "If" there is a change in the Bush tax deal can you live with an agreement that taxes those at $1 mil + ? I can. I think as part of a beginning to get some progress we must. Also, while I'll never be a candidate for the death tax program I still support the Republican stance there. After all, work hard your whole life then give it to the Gov't!! NEVER Jeff

December 8, 2010 at 10:26 am

about this blog

  • Cheryl Casone joined FOX Business Network (FBN) in September 2007 as an anchor. Prior to FBN, Casone served as a correspondent for FOX News Channel’s (FNC) business unit and was a regular guest on FNC’s Your World with Neil Cavuto. Casone brings years of experience covering finance, business, and consumer news to FBN.

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