Markets rose today making this the best week of the year (i.e. hope you had some skin in the game). Rumors are abound on Spanish bailout plans and although China will release data for May that was most likely as worse as April, most of the damage happened in last nights Asian/Euro sessions and carried over to the American session with Asian only assets.
The DOW (INDU) gained 93 points, the Nasdaq (COMP) rose 27 points, and the S&P 500 (SPX) was up 11 points.
Oil lost 72 cents to close at $84.10 a barrel.
Gold gained $3.40 to finish at $1,591.40 an ounce.
The 10-Year Note rose pushing the yield down to 1.57%.
Most Everyone has heard of the now infamous “Fiscal Cliff” which the USA is approaching. In fact that’s pretty much Mitt Romney’s Presidential platform, in that he would solve the issue by extending the “Bush Tax Cuts”.
Even now former President Clinton has called on the Obama Administration to extend at least temporarily all tax cuts. Odds are high that in fact there will be some sort of extension to buy at least 6 more months for Congress to find a real solution. Today in a speech President Obama asked Congress to re-look at the programs his administration outlined previously for job creation, and began to shift this issue onto Congress saying that they will be held accountable. Saying, “If Congress decides despite all that, that they aren’t going to do anything about this simply because it’s an election year, then they should explain to the American people why.”
D&D has a real solution to the Fiscal Cliff, and a real solution to fix the US tax code, along with entitlement programs. The solution is outlined in the paper entitled “Comprehensive Long-Term American Deficit Solution” by Del Lienemann, Jr.
Here is a snapshot of the outlined plan:
“The Comprehensive Long-Term American Deficit Solution consists of 4 main components. They are a Long-Term Deficit Reduction Plan Component, an Annual Budget Deficit Reduction Plan Component, a Tax Reform Plan Component and a Social Security and Medicare Plan Component…
If the Comprehensive Long-Term American Deficit Solution is passed by Congress as a package prior to December 31, 2012, the following provisions would be repealed: (1) the 1.2 trillion in across the board cuts contained in the Budget Control Act of 2011 and (2) the .9% Medicare tax increase and the 3.8% Medicare tax on investment income contained in the Patient Protection and Affordable Care Act.” sited from the paper “Comprehensive Long-Term American Deficit Solution” by Del Lienemann, Jr. C.P.A. and Trading Partner for D&D Investments.
D&D will be breaking down the 4 components of the plan next week in our Note of the Day. At the end of next week we will publish in full the plan on the D&D Investment Blog.
On Twitter D&D will also be asking for your feedback on the parts of the plan. Follow D&D trading partner, Dave James Lienemann, at twitter handle @DaveJamesSF for all the latest on D&D investments including our; daily watch list, buys, sells, market movers, and market insight.