Learned that the Worlds Largest economy, ours, remains resilient. So far from firing on all cylinders. Manufacturing is improving. In the face of a strong dollar and falling oil prices. The consumer is spending, the job market is strengthening and the stock market rebounded. After china devalued the currency earlier this week and all week long. Today, we got Additional Information on the state of the economy bringing investor attention back to good Old Fashioned fundamentals. Its a familiar story, but it paints a muddled picture. On the bright side, the u. S. Economy is growing. Two key numbers out today confirm it. The Producer Price index or ppi up 0. 2 of 1 and Industrial Production also higher. 0. 6 of 1 . Both up more than expected. But whether the u. S. Economy is moving fast enough to justify an Interest Rate hike by the Federal Reserve, well, that is another question. If theyre going to move its once or twice and only the move off of zero and to stay silent in the election peri
The market pretty much yawned after the inauguration. Okay, dow edged up 95 points. S p advanced just 0. 34 . Nasdaq gained only 0. 28 . You know why . Because weve heard it all before. Yep, weve been living with trumps presidency in waiting for nearly three months, and i cant think of a previous elected official who has given you more of a progrowth game plan than donald j. Trump. Hes been giving a dry run for ages now, which is why ive been so flummoxed by the endless pundits who keep saying, look out. Here comes a real swoon. Now, look, swoons can happen. I think swoons, though, come out from left field. Huge selloffs come from viciously overbought markets that are jarred by the unknown. Like if trump had ordered all the democrats off the stands, or he said he needs to challenge the checks and balances in the constitution in order to make America Great again. We didnt get that. His inaugural entrance was pretty much the same thing we heard when he was stumping around the country. Wh
What do we bid on when the market comes in from the auction or because theres too much profit not to take something off the table. What can you still sink your teeth into . As the averages barely budget, dow up 11, s p slipping to. 06 , thats 9 , and even after years and years of managing money in some form or other, these questions swirl through my head as i look over todays action after a big up day yesterday. It is always like this, the big rally, the consolidation, trying to pick what can still move and making sure that you wont buy something that wont be able to will rally because its just plain bad. Now we had a momentum market going here, meaning investors are chasing whats hot and if you dont mind buying high, theres plenty to choose from. It is just ramping and hey, you can buy netflix, amazon. The two sainted stocks that dont need to show earnings as theyre all about the love of their customers. You can use the big secondary offering from facebook, and 41 million shares from
How can the market keep climbing and why everyone has such a good return. The nasdaq sank and the nasdaq finished flat. When does prudence dictate ringing the register and going home house of pleasure. To the house of pleasure. Welcome to the intersection of Money Management and valuation. First, i can tell you what we used to do at my old hedge fund. If we came into november well ahead of the averages when they were up as nicely as they are this year, it was, as they say a nobrainer. Wed sell everything. Sell, sell, sell, sell, sell, sell except half a dozen noliquid banks, the ones we had high exposure with and couldnt get out of and we would trade every day from a standing start. Buy, buy, buy, buy literally day trade and wed start from scratch putting money in and taking money out at the bell. Yes, we knew where our money was. In the bank sometimes it would keep us tormented by watching the stocks and doing nothing. I went to a lot of movies back then. I think i must have seen shaw