What happens when you run out of cork to plug the leaks in your sinking ship?

What happens when you run out of cork to plug the leaks in your sinking ship? That’s what investors will be asking themselves as we draw ever closer to the end of the third quarter and the stimulus high wears off. A period of uncertainty lies just beyond the horizon and more likely than not the seas are going to get rough. Markets around the world are feeling the pressure from that global economic uncertainty leading many to head for the hills of safe-havens like gold and U.S. treasuries. While Tuesday’s U.S. consumer confidence data seemed to make that light at the end of the tunnel flicker just a little brighter, the conditions in the U.S. – particularly unemployment and “QE Infinity” – remain at the top of the list of concerns weighing on investor sentiment…a list of concerns that include the Eurozone debt crisis and the absence of China at the stimulus table. The global economic picture gets even gloomier if you take into account the International Monetary Fund’s plan to cut global growth forecasts and Caterpillar’s earnings forecast revision. With a lack of highly anticipated domestic reports for today, the focus will remain on Europe where tensions are building in Spain as protestors march against more austerity measures ahead of the new year’s budget. It doesn’t help that Spain’s Prime Minister seems to be playing a game of chicken, with his country’s financial future on the line, amid questions of whether or not Spain is going to seek a bailout. Have a great day!