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
Rally. S p climbing 1. 54 . Nasdaq gaining. What happened to make everyone go from negative to positive practically overnight . Primary catalyst is the strength in oil. As long as oil hangs in there, roars higher there wont be big defaults in the oil patch, just small ones. We saw it today. The run on crude is incredible. Crude, crude everywhere and not a drop to be able to you cant find storage. You can always tell this kind of thing that oil is in control by looking at how the s p 500 futures trade before the stock market opens. The socalled overnights. Last night with oil up 75 cents the futures looked like they would take stocks up a half percent. As the oil futures traded up to double that, the s p futures suggested that the market would rally up a full percent. It is lock step. In the second positive factor, second factors crept into the market and well talk about it though its political. It is being over looked. Bernie sanders, looking like a paper tiger. With a small loss hes n
Immee trying to keemao rubio ive. I expect trump to go after mar rubio in a way he aryohe day announced forresident. Now you have a pro busines republan versus pro business democrat. Maybe ats why the market is rong now. Trump doesnt ha much good to say about the banks. s reserved special lash againshedge funds but as long as sande is a threat expect invective against the banks d Drug Companies from llarys camp they are huge targetfor the left clinton hataken millio in donatis over the years fm the ug companies. Wenow joson johnson, brislmyers, ea are amon hebiggest givers. You veo believe she can ea up on the antibusins rhetic. There aialogue. It will be a lot less heed if sanders is sidined. Call mskeptical since we are thstates in. It seems like what the market has been sayin hillerspenme with wall streeters of the hedge fund and this doesnt mean they own her candidacy but there is a dialogue which imore than nders or predent obama offered. Thmarket knows hlarys modete stance. Its w
It is lock step. In the second positive factor, second factors crept into the market and well talk about it though its political. It is being over looked. Bernie sanders, looking like a paper tiger. With a small loss hes now buried alive. Now we are hearing about how Hillary Clinton has locked audiotape huge number of super delegates and it could be impossible for sanders to win. Where did that come from . I have been saying when we get clarity in the president ial race its good for the stock market. Since the media likes a horse race, be careful. When the map turns to sanders in a month. Maybe the press will declare hes come back from the dead. Knocking out sanders, if hes knocked out, as every piece of journalism i saw this weekend post nevada suggested allows hillary to go back to a moderate which is friendly to wall street money. Immediate is trying to keep marco rubio alive. I expect trump to go after marco rubio in a way he are yous the day he announced for president. Now you hav
Nasdaq gaining. What happened to make everyone go from negative to positive practically overnight . Primary catalyst is the strength in oil. As long as oil hangs in there, roars higher there wont be big defaults in the oil patch, just small ones. We saw it today. The run on crude is incredible. Crude, crude everywhere and not a drop to be able to you cant find storage. You can always tell this kind of thing that oil is in control by looking at how the s p 500 futures trade before the stock market opens. The socalled overnights. Last night with oil up 75 cents the futures looked like they would take stocks up a half percent. As the oil futures traded up to double that, the s p futures suggested that the market would rally up a full percent. It is lock step. In the second positive factor, second factors crept into the market and well talk about it though its political. Bernie sanders, looking like a paper tiger. With a small loss hes now buried alive. Now we are hearing about how Hillary