Climbing 8. 86 how do we interpret the market is the market heartless in response to the plea of the protesters is the Market Making judgments about the difference between violent protest and passive resistance i know many people wish it would. They want the market to be part of the debate. They want it to play a constructive role in the dialogue over racial ee qualiqur go down to express empathy for the troubled times were living through. Thats not how it works. The truth is the markets blind because it has no eyes its deaf because it has no ears its a convenient abstraction, not a personal opinion investors make judgments until recently nobody was investing with an eye toward making the world a better place whatever that might be now there is a Younger Generation of investors with hearts in their heads. I share the sentiment. For the most part people pick stocks because theyre trying to make money we buy stocks at companies, Good Companies with good longterm prospects. Mainly ones th
Guillotined as the action in the bomb market indicating the economy is improving we dont need those kinds of stocks anymore the market is constantly trying to predict the future, takes inputs, aggregates them, the consistent growers are out and the cyclicals are in thats right, the companies that can build big numbers when the economy is in shape, theyre back theres just one problem, the random set of inputs and outputs is missing a key ingredient, emotion. If you want to be a successful investor, you need to check your emotions at the door and right now thats not happening. Let me show youwhat i mean why dont you take a stock we all know, merck, then amazeingl it spent two decades lots in the wilderness until they discovered keytruda mostly lung cancer, in trials for many types of tumors, the strength of keytruda breathed new life into merck stock. Now merck has dropped five bucks in two days with the darn thing coming back down to 81 at its hideous lows, it was down nearly 10 from la
Lucrative. [ ka ching ] especially when the risk seems washed out by multiple town days including days like today that opened horrendously. The dow at one point down 135 points but then finishing strong. Hallelujah the dow gaining only 68. Nasdaq climbing. 86 . It was the kind of comeback that only happens when a market is oversold and investors have said, enough already. Im going to hold on to what i have left. What do i mean when i say the market is making sense . How about the fact that the slowing growth of the Global Economy and the negative manufacturing data we have seen in this country of late have caused Interest Rates to go low and thats logical. Rates are low. Housing becomes affordable. When housing is affordable people switch from renting. Especially in a situation where rents are about the highest they have ever been when you relate it to the cost of buying a home. Throw in that the banks are willing to lend a bit more with less of a down payment to people who need a loan
Anniversary and replace it with a republicanwritten program. A vote that ultimately got postponed because it didnt look like the bill could pass. This legislative circus is creating a world where the averages are held in abeyance. Either one step away from the gallows or nirvana. Dow dipping five points. S p inching down 0. 11 . Nasdaq declining 0. 07 . Thats the definition of flat line, people. First let me set the scene of where we are at this moment and then ill go into the real risks and rewards so you know whats actually on the line here, not what you heard is on the line. Now, we know first of all that something has to be done with the Affordable Care act as the Big Insurance Companies are prepared to pull out of the exchanges that were supposed to drive prices down because theyre losing too much money on the policies. The problem . Lots of older people with preexisting conditions keep enrolling, and there arent enough younger, healthier people signing up to balance them out. If
Down a bit, as for the 10year note yield and oil, really oil and perhaps becoming more important yet again to our broader equity markets it is up rather sharply extending gains from oh. From friday after the strong jobs number. To our road map and it starts with walmart buying jet. Com for 3 billion in cash and 300 million worth of walmart shares. That will be paid over time. The biggest acquisition of an Ecommerce Company ever. More on the deal coming up. Plus, delta trying to get back to normal after all flights were grounded across the world due to a computer problems. Shares lower this morning. And from the pool to the beach, all the highlights from rio, including Katie Ledecky and michael phelps, both of whom wowed the crowd last night. I could watch that swimming all the time. Just love it. Being thats what i do. More important on the troubles of brazil. Just watch the competition. The competition is incredible. It is. Moratorium on the life. Heres the problem with the water, the