Market is so ugly that you just want to get out now. I cant endorse that here. Up. 20 . Id be lying if i told you i feel great about this market. Especially, the forecast. Ever going to get those. Lets start with what i think is the real elephant in the room. Lets talk about the bond market. At its power bleeds into the stock market every day, and has been a bleeding in a bad way. How does it do that . When the government sells bills, notes, and bonds to pay for the deficit it weighs on everything. Considering the gigantic sideshow that could hurt your portfolio. You got to use 44 billion, sevenyear bond auction thats tomorrow. On top of todays 70 billion dollar five year note auction. Especially, on top of the 69 billion sale. Talk about cash is rook. Its gotten so compelling to so many people. But, they want to buy some of these bonds. Which means they often need to sell stock in order to swap out of that and into the bond market. You need a lot of ponders to come in, and by these bo
Ahead of tomorrows key inflation data. Amazon the first record close since 2021. Thats one day after hitting a fresh 52week high. It was fresh, jim. Lets begin with the ongoing ai revolution. Last night on the social media platform x, elon musk weighed in on the Rapid Development of Artificial Intelligence. My guess is that well have ai that is smarter than any one human probably around the end of next year. And then ai the total amount of compute of ai i think will probably need all of humans in five years. Well get a lot more today, jim. Google cloud ceo keynote at note. I love tom curran. Hes been doing a good job. Dont call him tom. I will not. I spent a lot of time at ttc, the nvidia conference. We talked so much about when theyre going to be smarter. They are already. Surprised what musk said. One of the things that jensen said put your 100 smartest people together in a room and its smarter than they are already. Its just smarter. By the way, anything that can be done physically,
understand by the way that s volume one. it s a coloring book. yes anyway, thank you very much. but i ve got my work cut out for me and boy, is it difficult. jim put it on twitter earlier this morning, our thoughts with jim today. futures are soft on this monday. i m still here. don t say that worst day for stocks in several months china tries to get back to work, paul on the hill this week yields nearing a one-week low. the fight to contain the coronavirus, the death toll surpasses that of sars factories and businesses in china trying to resume operations plus we re on deal watch. we got a few this morning. simon properties buying taubman center and elle brands the sale of victoria s secret stocks are set to open lower because of the coronavirus the number of confirmed cases in china is well over 40,000 including 910 deaths, make the outbreak deadlier than the sars epidemic of 012 and 03 it shuts down businesses and manufacturing and a slew of headlines eve
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
Enthraled with the company, if the rules say sell you sell it. One thing you learned in my career, no matter how much you believe in something, you violate the rules of the road at your own peril where the heck do the rules come from it is not like they were handed down on high thand carved into stone tablets. You cannot deduce from the market works the way you do gravity. No, the rules come from experience and particularly my experience ive spent nearly 40 years in this business. And in that time, you Better Believe ive learned some powerful lessons in many cases, i learned the hard way because i dont want you to repeat my mistakes and i do want you to have the benefit of my whole career, tonight i want to layout my most important rules for investing. The stuff i really live by some of the stuff may seem basayev ick. You forget the rules at your own peril. I convinced myself it was okay to make an exception to have a cheat day. Ignore my discipline of just this once. For so reason, it