If there is one historical analog pattern that may match our view of U.S. equities the best, it is the period between early 1947 to mid-1949. This was a slow slog to new lows in post-War America, but with some sharp intermediate rallies along the way. In 2012-2014, it should be a similar slog to new lows as revolts and protests continue to materialize globally against perceived economic wealth inequalities. There will be a change of sentiment for the better after March 1, 2012 and then again after November 17, 2012, but similar to the three years below of 1947 to 1949, 2012-2014 should represent overall a slow step-and-stumble lower. Only look for a victory celebration of some sort by the market between the latter half of 2014 to September 2015.
No Endgame Except for Sand Spring
