The Fed is moving closer to QE3 and says so in minutes of its July 31 - August 1 meeting released today.
So ask yourself this basic question.
If the Fed and Mr. Bernanke believe the economy is weakening, why should you buy equities? Stocks, real estate, whatever. WHY BUY NOW?
Every U.S. President on inauguration day gets a recession as an incoming present. Whether Obama or Romney wins matters little to the GDP. There are way too many headwinds to avoid another increase in unemployment rates and even slower GDP growth. Right now a new recession is coming unless there is a deal on the deficit.
Again, it's not just me saying this. Ask the Fed. QE3 is coming.
If they see weakness, why not wait and see if Bernanke & Company are right? What's the hurry?