This blog post originally appeared on RealMoney Silver on Jan. 9 at 7:42 a.m. EST.Not so fast -- for the markets or for politics. Just when it looked safe to come out of the bunker, stocks reeled under the pressure of fresh news of economic weakness and increased financial stress. And the outlook for the 2008 Democratic presidential nomination, seemingly assured only 24 hours ago, changed equally dramatically overnight. Maybe there is crying in politics, as the Obama express seemed to go off track, too -- at least temporarily. Meanwhile, the administration and the Fed lack a sense of urgency, fiddling around while the U.S. economy burns. And it's not much better in Western Europe, as I have repeatedly underscored, as Marks & Spencer had its largest daily drop in nearly 20 years after reporting weak holiday sales and issuing poor guidance for 2008. My last blog post on The Edge for RealMoney Silver yesterday highlighted the growing recessionary signs at SuperValu ( SVU), Walgreen ( WAG) and AT&T ( T), which seemed to be the proximate course of the market's abrupt swoon lower yesterday afternoon. By contrast, DuPont ( DD) just raised its 2008 view. Jim "El Capitan" Cramer is correct. The Federal Reserve and the administration really know nothing.
Be particularly skeptical with regard to those talking heads (strategists, investment managers and members of the fourth estate) that speak with bold authority and confidence as they "advise" us in the media. (That includes me!) Find your own voice in this treacherous market. Trade/invest with smaller positions as volatility, as I discussed recently, is downright ludicrous. It's the hardest stock market to navigate ever.