The dark real world, though, in the interim got in the way of the story. It got ugly fast today. Im talking about how two Great American industrials that we follow here on mad money, pbg and honeywell, cut estimates ahead of their quarterly reports. Those reports are going to be coming out soon. Amazingly, while the whole market initially shuddered in an acrosstheboard selloff, the averages spent most of the day in recovery mode. A wicked session turned relatively benign with the dow ultimately dipping 28 points, s p declining 0. 33 , and the nasdaq losing 0. 27 . These two earnings wni time, worse time for the industrials at least which had been rallying ahead of the soon to be released quarterly reports. But as is often the case, money flowed into other sectors as soon as the disappointments happened, notably the banks and retailers once the cyclical smoke cleared. Despite a tepid nonfarm payroll report, at least according to the prognosticators, these two groups helped the markets m
The interim got in the way of the story. It got ugly fast today. Im talking about how two Great American industrials that we follow here on mad money, pbg and honeywell, cut estimates ahead of their quarterly reports. Those reports are going to be coming out soon. Amazingly, while the whole market initially shuddered in an acrosstheboard selloff, the averages spent most of the day in recovery mode. A wicked session turned relatively benign with the dow ultimately dipping 28 points, s p declining 0. 33 , and the nasdaq losing 0. 27 . These two earnings warnings couldnt havco time, worse time for the industrials at least which had been rallying ahead of the soon to be released quarterly reports. But as is often the case, money flowed into other sectors as soon as the disappointments happened, notably the banks and retailers once the cyclical smoke cleared. Despite a tepid nonfarm payroll report, at least according to the prognosticators, these two groups helped the markets midafternoon r
Environment drives stocks highers, isnt it . Over the average either at or striking distance from the year, dow gaining 18 points, s p advanced. 13, nasdaq inched down, we have to go over what allows us to reach these levels. The backdrop thats conducive to higher prices for the overall market. In short, whats so special about stocks right now that we are at or near or challenging these high s . First, investors like to see low inflation. When you have low inflation, that means the longterm value of stocks, the future earnings streams youre buying are going to be preserved. High inflation erodes that value because it means those future earnings will have less purchasing power. Last friday we gotten a employment number that signalled there is no inflation in the system other than the mandated inflation that comes from higher state and local minimum wages. Tame inflation means that all stocks are worth more so even if you hear that the stock market is expensive, it might not be as expens
Market clearly arent ready for. And that was what todays decline was all about, the dow tumbling 394 points. Nasdaq tumbling 2. 54 . The rate hikes coming. Perhaps as soon as the feds meeting later this month. And i think you need to be ready for cash when it does, because i dont think this selloffs over. You need to understand the risk world here. It is true. It could hold steady. You could miss 2 , 3 , 4 rally. But considering that janet yellen and Stanley Fisher talked openly of the need to raise rates. And then Eric Rosengreen joined the course. I think the risk is too great to risk a possible 2 gain. I dont know why you would want to do it. Weve been lulled into accepting the proposed brexit volatility is gone. That, too, concerns me. When it comes back as it did today, its pretty obvious investors arent prepared. You know what they do, they panic. Nobody ever made a dime panicking. I dont want to you panic, thats why you need to be prepared. You can follow along with my Charitabl
Nasdaq tumbling 2. 54 . The rate hikes coming. Perhaps as soon as the feds meeting later this month. And i think you need to be ready for cash when it does, because i dont think this selloffs over. You need to understand the risk world here. It is true. It could hold steady. You could miss 2 , 3 , 4 rally. But considering that janet yellen and Stanley Fisher talked openly of the need to raise rates. And then Eric Rosengreen joined the course. I think the risk is too great to risk a possible 2 gain. I dont know why you would want to do it. Weve been lulled into accepting is gone. That, too, concerns me. When it comes back as it did today, its pretty obvious investors arent prepared. You know what they do, they panic. Nobody ever made a dime panicking. I dont want to you panic, thats why you need to be prepared. You can follow along with my Charitable Trust, a highly unusual 20 level. We chose to sell some of our absolute favorite stocks, including prr being prepared means selling or tri