The American financial system is losing political and economic power. U.S. output is burdened by expectations and obligations that are increasingly hard to meet, and the country's GDP suggests a national economy that has lost control of its destiny to forces beyond its control. Energy dependence, rising fiscal deficits and an aging population and infrastructure will present problems in the next half decade, but will provide opportunities for capital gains, and will seem more manageable as markets recover.

It is important not to get carried away with short-term bursts in the market. These bursts have not eradicated the causes of the ubiquitous bear trend. We must not measure our self-worth by the value of our portfolio at the end of the given day. The most aggressive gains emanate from prudent portfolio methodology and a long-term orientation toward economic dynamics.

Scotty George of du Pasquier says in the Arlington Econometrics weekly market commentary that the disinflationary curve is at an inflection point, and that we are likely to see an upswing in the cost of money, savings rates and prices. All of this could usher in a new cycle of economic phenomena.

Financial markets need to stop picking at old wounds before they can heal, says du Pasquier advisor Scotty George. Slow earnings acceleration, poor industrial and consumer demand, job cuts, stagnant wages, currency imbalances, expanding worldwide debt and skeptical consumer sentiment are all keeping market numbers in negative territory.

?The aftermath of a bull leg is sometimes unpleasant. We are experiencing a normal capitulation in stock prices that follows the remarkable success of last year?s bull cycle. ?Unleveraging the euphoria? is far from crisis levels, yet, but unsatisfying, nonetheless, while it?s happening.?

?Today, the climate in the financial markets is tenuous. Despite the public?s low levels of trust and confidence in their institutions, particularly their financial institutions, they continue to inv

My work is leading me towards smaller cap and emerging markets as untapped sources of capital gains. Additionally, since earnings acceleration patterns are quite narrow, the universe of possible cand