Stockbyte: US Treasury Secretary Timothy Geitner said today (and I paraphrase) that the dramatic change in the world economic condition can not be corrected by the market without help from the world’s governments. A true Keynesian point of veiw that caused a delay in the stock recovery during the 1940s and 50s. Where top individual tax rates were between 94% to 86.45%! Source: Tax Policy Center
I don’t see Obama raising rates to 94%, but it is possible top rates could exceed 50%.
In light of this continuing attitude out of the Obama administration, I see the market staying within trading limits. I don’t see SPY breaking $125 this year. I think we will retest $75 at some point this summer.