End of year observations

Once again I got stopped out of a position. I dumped SCO at the close Friday with a very small 3.68% profit , but being as it crossed the moving average line to the downside I dumped it. Model Portfolio update and chart of SCO below. 

SCO	100	29.61	30.70	-0.35	$-35.00	$+109.00	+3.68%	$3,070.00
Total					$ -35.00	$ 109.00	3.68%	$ 3,070.00

 This leaves me with no positions in the Model Portfolio for the first time in a very long time. A few observations about 2013 and a few thoughts on 2014. There is a time honored investment caution that states " Don't Fight The Fed ". I think I may have underestimated the power of the Fed to keep levitating the stock market to heights beyond all common sense and reason. The Fed was created to enrich the 1% and by golly they are doing a good job of living up to their mandate. The 1% and the banksters have been enriched mightily while main street, the retired, and the savers have been impoverished in the process. This is going to end badly, very badly in my estimation, but for now the music is still playing. I have been continually whipsawed on my positions all year and could never hold a position more than a few weeks before the market would turn direction. So much for 2013 which has the distinction of being my single worst year since I started this back in 1984. I didn't lose a lot of money this year but for the first time in a long time I didn't make any money. So much for 2014. What would my best guess be for 2014. I think the Fed can keep pumping till spring which means the general direction of the stock market should be up. I think we are very, very, close to a high but, as in life, everything takes longer than you think it should. Somewhere in 2014 we will have a correction of at least 20%. Probably 2014 will play out like I thought 2013 would. I think the Democrats are going to have a rough time in the mid term elections as virtually no one is happy with the way things are going. I think by the time the mid terms arrive we will see the emergence of a third party which will take hold and grow so that by the 2016 election they will be a force to be reckoned with. Not a majority but a force that will prevent the Democrats and Republicans from behaving so stupidly. I regard this as a good thing as neither party is worthy of my support. After the correction in 2014 will come another good buying opportunity in the stock market. That will lead us up to the 2016 presidential election. I think this will be when the Fed finally loses control of things and everything goes to pot. At this point it is hard to see how things play out. If the Euro collapses and there is a flight to the dollar we will have deflation. If the Euro survives the dollar could collapse and we would have inflation. Either will be bad for the stock market. In any event we have lots of good times and fun between now and then so let's focus on 2014. I'll keep you posted if I see any investment opportunities but for now nothing looks good.