1) Earnings are the weakest in 3 years
2) Portfolios have been poorly positioned for higher Capital Gains and Dividend taxes
3) Europe crisis unresolved, and getting worse
4) The 17% rally in first 3 quarters had markets ahead of themselves
5) The decreasing impact of Federal Reserve QE.Let me add a few more points.
1.) We're entering the last month of the year when trading desks are half full and people are taking more time off.
2.) The Middle East is a powder keg. Even if we get a resolution to the current Israeli/Palestinian conflict, there is Iran.
3.) Japan is in the middle of another recession.
4.) China's economy is re-balancing, leading to slower growth.
5.) Australia's economy, which is heavily resource dependent, will start to experience a slowdown in the next 12-18 months as projected capital projects come to fruition and no other source of growth is in the wings.
6.) The US is still stuck in the 0%-2% growth range.
7.) Long-term unemployment is still a big problem
8.) State and local governments are still implementing their own version of austerity on the US economy.
9.) The South Korean Economy is slowing down
10.) Brazil is experiencing slow growth.