What would a strong swimmer do here . Thats what im trying to think. See, you cant outswim the currents. Not even phelps could match some of these twists and turns. That doesnt mean we cant figure things out together. You and me. Spot the patterns. Come to the conclusions. Conclusions that make sense given the fact that there are so many rotations going on even midday. And multiple winning ones of with got to exploit together. Lets start with what happened one week ago today. Most traders and investors presumed because of the polling that Hillary Clinton would win the presidency. They made a host of big, big bets on hillary betting that she would win. Mostly wagers that a Clinton Administration would be an extension of the obama administration. Gridlock, not so hot growth. Which somehow we were convinced we liked. In that situation you want to own companies that can grow because the economy will stay stalled, right. Not so fast they draw government scrutiny like banks that are doing to
I dont blame them. I was a rambunctious kids when i started managing my own money. At first i didnt know the rules then i spurned them because they cut off my upside. Even if they cushioned the inevitable downside. In other words, the rules kept me from making a huge amount of money when things were going gangbusters in order to keep me from losing big money. When things went badly. The house of pain. The rules im discussing tonight keep you in the game even when things are tough and you make mistakes. [ buzzer ] they protect you against your own bad judgment or whatever is happening in the market overall. But if youre going to make money using stocks because you just cant get much of a return anywhere else these days, thats pretty much the case you are going to have to work harder with your money to do so. And that requires discipline. Discipline because once you start buying and selling stocks, you can make more mistakes than if you just do nothing with your money. But if you do noth
5. 3 . These are the questions dominating the discourse all day. I would put it in perspective, empirically, anecdotally and emotionally. Were in an unusual backdrop. Because the demand for u. S. F z treasuries from overseas, our Interest Rates in this country are much lower than they should be hallelujah unless youre a saver. Youd expect rates to rise. Thats normally what would happen. Treasury yield should be higher, which would drive other rates higher in, again, another normal situation. But were far from normal [ buzz ] Central Banks around the world are debasing their currencies. One third of all government bonds around the world now have negative yields at the moment, meaning if you buy these bonds youll actually lose money. Not here, though. So of course theres a scarcity of u. S. Bonds. Creating lower Interest Rates for all. Foreigners are thrilled to buy our bonds because you can make some money owning them, however meager. We have even more worldwide economic turmoil if they
Coming off of the 1. 51 level yesterday. And the day begins with record highs again, and what could cause this market rally to slow down . General mills shares are up, and the ceo will join us on a first on cnbc interview after he rings the opening biell. And the Prime Minister set to take over for David Cameron and what the change at 10 downing may mean for the futures. And stocks looking to extend the winning streak, and make more history in the process, the dow and the s p hit new highs led by the indiscretionary and the industrials, and the nasdaq in positive territory for the year, and rising to the highest intraday and closing levels of the year, and ten sessions, and 7. 6 of the s p 500, and the best ten days in five years. I used a proprietary oscillator that i use that is so good, and we hit 10 yesterday which is historically when you are supposed to start selling. That is a very high level. 5 is the beginning when you should be worried, but 10, you should be worry and minus 5
A big reason why the dow sank, nasdaq claimed. 8 . The intense competition created by the sheer number of companies in business may be good for the consumer, good for you and me. We all benefit from corporations duking it out for our patronage. At the same time, this competition is an anathema to profits [ booing ] wh companies doing deals, even could argue the governments around the world have gotten tougher on mergers and a lot of stocks are pretty darn expensive versus their historic valuations. Let me take you through the Competitive Landscape sector by sector starting with the food group. The Food Companies have so little growth that the best ones like General Mills are hoping for flatter reits next year at best. Think about the fierce composition in space. Virtually every aisle of the supermarket. Does campbells soup need to be independent, does kelloggs stand alone . Up on hershey. Come. If they cant get their act together why doesnt mongolese buy the company . The supermarket a