Realize that this lawns full of weeds and dead grass and bugs and a golf ball okay, this is what the market is really about not this, but this see how the averages rallied again today, the dow inches up 47 points, s p advancing 2. 3 . The nasdaq gaining 1. 06 but almost 3 5ths of the stock in the s p 500 are actually down for the year were in high territory because of the other 2 5ths up a lot heres the real economy. The truth is, the weeds are more representative than the healthy patch of lawn, and in many ways its getting worse, not better, as the weeds begin, i think, to infect the nice part but when you look at the whole s p, you cant see the weeds you see, theyre obscured by Tech Companies with big gains. Who wants to talk about the other 291 stocks that are down for the year when you can focus on the incredible runs in amazon, microsoft, apple, facebook, alphabet its a lot more fun talking about tesla, up 378 than talking about gm or ford down 27 and 21 . Tesla has about 50,000 e
Doing much, much better . What happens when the u. S. Government surprises us and does something that investors perceive as being good for business like this tax overhaul that many of us gave up on happening. Day like today, dow rocketing up 332 points to close above 24,000 anz investors decided willing to pay more for stocks because good oldfashioned Companies Keep the surprises. In short, you have to abandon cynicism to understand this market lets go over whats happened. Show you what it takes to have this kind of rally, how many Different Things have to go right. Which shouldnt seem that out there. Theres only a 1. 4 move, sounds bigger than it is. Been tame lately 332 points it worth noting even as were getting overbought. In context, most strategists on the record have turned very negative on 2018, valuations are getting stretched. Not prudent. Need to start selling now because funds are too big to dumb everything december 31st. At the same time they need to outperform the average
Seems like some old line company surprises us with good news, causing investors to buy their stocks hand over fist. Buy buy buy buy buy the resuscitation of these falling stars is whats behind a lot of the strength here the dow gaining 98 points. The s p and nasdaq advancing new records all around hallelujah let me give you some examples. Last night, att completely out of the blue, delivers a delicious upside surprise, which is why the old teleco stock could leap up like a small growth stock nearly 5 in one day. How the heck did they do it . They gained subscribers and some came in an obvious way, a merger and tiein with directv that has gone smoothly. At t is now buying time warner and they give you a hint why, beyond the need to diversify on the Conference Call, at the end of the q and a, in an answer to a question about how time warner might fit into the bundle, cfo john steffen said with regard to hbo, customers like it. Customers like the opportunity to have that with their phone.