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“Investors continue to be amazingly complacent (the VIX is below 13).  The prevailing sentiment is -- nothing bad can happen as long as Ben Bernanke is in control.  And if something bad does occur, why worry -- we'll just step aside and get into cash.  This actually may make sense to most people, but what bothers me is that it is so darn pat.  I want to be optimistic, but when nobody worries, I worry. 

My attitude is like two explorers in a jungle dominated by savages One explorer turns to the other and whispers, “I don't like it.  It's too damn quiet out there.”  Which describes my current sentiment.  “I don't like it -- with all the things going wrong in the world, it's too damn quiet out there.”

I believe the worst thing for one's health is stress.  And when I sense a stressful situation, one that I, personally, can avoid -- I avoid it.  Which is why I'm not in this market.  And maybe why I'm 88 years of age.  But that doesn't apply for my more adventurous subscribers.  I advocated buying the DIAs for my subscribers, most of whom probably have stronger stomachs and hearts than I do. 

The disconnect between the stock market and reality is becoming acute.  For instance, retirement has become an American dream.  New research by the Employee Benefit Research found that only 13 percent of workers felt that they would ever be able to stop working, which represents a huge drop since 2007.  This means that many workers will remain on the job, rather than try for retirement.  The sad part of this is that new-comers to the job market are having a very difficult time finding a job since there are far fewer job openings. 

Says Helen Olen in, “We keep being told to stay in the workforce longer and to save more money, but how can we when household incomes are falling and older workers can't find jobs?  Even a booming stock market isn't likely to help.  Only about half of us have investments in the markets, and even then, for most of us, the amounts are mere trifles.  Saving 3 percent of one's salary in a 401K is definitely better than saving nothing at all, but it's hardly enough.”

Russell Comment -- The government's all-out propaganda campaign to tell Americans that all is well, surpasses any thing I've ever seen in 60 years of watching markets and the news.  However, the huge propaganda effort by the government and the Fed is losing its believers. 

Currently, the job picture is so brutal that the word is getting out.  College graduates are taking no-pay intern positions in the hopes that the companies they work for (with no pay) may hire them for pay when their internship is over.  Many interns are so desperate for money that they are taking menial jobs like waiting on tables in order to make ends meet.  In other words, the disconnect between what the government tells us and stark reality is widening, and increasingly, the public knows it.”

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© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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Eric King

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