Stocks after the worst day for the averages in two years . Does it make sense to bail on the market when the dow just plunged 1032 points, s p 500 plummeted 3. 35 , and nasdaq nose dived 3. 17 is that the right thing to do or should we treat in melt down like a buyable pull back honestly, it depends on five factors. So lets check them down one, do you have enough cash to buy or do you need to borrow to make that happen if you dont have a decent amount of cash on the sidelines, you shouldnt do any buying. Do some selling in a moment of strength history suggests we could bounce tomorrow take advantage of that lift, do some selling promises are not going away. Look at your bank account, do you need that money in the near term, say the next 12 to 18 months, if you dont think youll need it and you havent bought anything yet, then i think it makes plenty of sense to start putting that cash to work but only if the market gets hit again. Do not buy a rally please. Get a rally, you missed it it
Dow only gaining 69 points, s p climbing. 35 . You got to wonder if the buyers are simply stooges are they ignoring headlines like fallout deep yeps for u. S. Strike that was from the wall street journal. And these headlines were as wide as you can get have we forgotten that iran vowed to get revenge for the assassination of its mastermind, general Qassem Soleimani are we whistling past the graveyard of their inevitable retaliation . It sure feels that way just a short 12 hours ago, the s p were looking down 1 news on the trumps adtrati administration 200 point dow jones deficit. What a comeback. So whats going on here . All right, look, im willing to suspend my belief that perhaps the markets wrong and give you some ideas because there could be many different forces at work first, investors have learned that these kinds of events tend to be buying opportunities since President Trump took office weve actually had three conflictrelated selloffs while they may have seen disturbing at the
Although its been said before, weve got new old news, i guess that the Drug Companies and the opioid business are facing a criminal probe. All of which would have at one time virtually trashed this market. Instead, the dorn thing just wont quit. Dow gained 55 points. Nasdaq advanced. 18 with all three closing at record levels. So we have to ask ourselves, what the heck is going on here so you know what im going to do in honor of these records, im going to run down all the reasons why this rally keeps on trucking first, while, indeed, discounter dollar tree had problems with the tariffs, the big guys are doing just fine. Walmart, target, amazon, costco simply havent felt the pain. The tariffs air problem for some many chains but the sky is falling narrative hasnt played out. Inflation remains subdued. When you consider everybody was predicting the trade war would devastate all retail, things are going much better than expected. Number two, the enterprise is very soft, but far fewer comp
Merger deal with pfizers generics unit. And disney domination. The studio breaking an alltime record for annual box office earnings, and of course, it is only july. So, theres a lot for investors to digest this week with stocks at record highs. Jim, coming off of those on friday, you were out, but a lot happened good to have you back. Thank you the starbucks calls kind of the emblematic of what happened this quarter. Starbucks had run big. So you had to figure, no matter what, how could it really move then it goes up big dollars because its better than expected, better than feared what were seeing are companies that we were worried about because stocks have run, and then the stocks do okay. So, this is a short sellers dilemma. Lets say youve been betting against companies because you truly believe theres been an earnings deceleration. If earnings just stay in line, the stock flies. If earnings are a little bit below, the stock doesnt do anything. Right. So, theres just this kind of bid
fragile democracy takes us to wisconsin, or a conservative majority supreme court just made it harder for its own citizens to vote, in a move that just happens to align quite nicely with the agenda of a certain twice impeached former president. and the velshi banned book club is in session, with a historical fiction title for younger adults, that has gotten parent so out of that it was the subject of a viral video, of an angry mom calling for its removal. velshi starts now. good morning, i am ali velshi. it is sunday, july 11th, 18 months and five days since a group of anti-american insurrectionists attacked the united states capitol in an attempt to overthrow the government and destroy american democracy in the name of a former president. mind you, that attempt is still ongoing in other ways. more on that later in the show. but luckily for america, the january 6th select committee continues its vital work in investigating that insurrection. and this morning, we are g