Stock Market and higher taxes

The down action this week is serious for the first time in years. As most of you know, I work in a small firm with a good cross section of investors---just above the mutual fund types and just below the really big hitters---and client chatter til now about the Democrats has just been jokes and idle conversation. Until late last week. Starting on Thursday June 14th a very small number of our bigger players began to "adjust" positions and liquidate some others. This was followed on Friday the 22nd of June with lots of selling and lots and lots of talk about switching their investment bases to foreign countries. Some have said they'd even change citizenship in order to save their nest eggs. All this is happening because of the sudden realization by everyone that the Democrats plan the Chavez style control of media, meaning talk radio and all other "out of step" media. This was an emotional wake up punch in the gut to our clients. Market falls like the past several weeks or so cannot happen unless the large institutional funds are bailing out, and they only bail because there have been redemptions by clients. This is serious shit, folks and don't be dreaming about the return of "The Gipper." All of you are different but this tidal wave will sweep over all boats and drown everyone but the super-rich. What to do? Investigate foreign investment bases like Dubai and London (?). It's coming and it won't be pretty. Start reading stuff like Kudlow (I know he is biased but he's very smart), Bloomberg, and especially IBD. There is also a very good stock guy I've never mentioned mainly because it is for a large investor so you can't take advantage of his outstanding picks; take a look at Murphy's New World Investor, rated number one strategy in many categories. While today he's touting energy stocks because of all the news and most cannot go in and buy a thousand shares of Chevron, his writing is always instructive.