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 trump s adtrati administration 200 point dow jones deficit. what a comeback. so what s going on here? all right, look, i m willing to suspend my belief that perhaps the market s 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 we ve actually had three conflict-related sell-offs while they may have seen d
although it s been said before, we ve 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 won t 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 i m going to do in honor of these records, i m 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 haven t felt the pain. the tariffs air problem for some many chains but the sky is falling narrative hasn t 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,
chips off the table. that is what we are debating now, do we ride the technicals, strong momentum, or start taking chips off the table, recognizing there is a cap on the upside? they sounded the alarm that it is all clear, the fed is not going to allow the expansion to come to an end. i m not saying that we cannot rally further, but this idea that vol will be low and there will be no issues the rest of the year is crazy, especially when the same people saying that said the exact opposite a month ago. having the optionality to take advantage of these type of dislocations, that is fast and furious because of the liquidity in the market, it is very tenuous. have things gotten a little frothy? yes. if you look at the underlying economy, it is strong. saying, we are on hold. this is not a market where you say, the wheels are falling off evidence the cart. jonathan: joining me in new york is kathy jones, subadra rajappa, and coming to us from london is diana amoa, the fi
we just keep seeing more uncertainty. it s time to sell or take chips off the table. that s what we re debating now. do we ride the technicals, strong momentum, or start taking chips off the table, recognizing there is a cap on the upside? they sounded the alarm that it s all clear, the fed is not going to allow the expansion to come to an end. i m not saying that we can t rally further, but this idea that volatility will be low and there will be no issues the rest of the year is crazy, especially when the same people saying that said the exact opposite a month ago. having the optionality to take advantage of these type of dislocations, that is fast and furious because of the liquidity in the market, it is very tenuous. have things gotten a little frothy? yes. but if you look at the underlying economy, it s still strong. credit spreads are tightening. if you look at what the fed is saying, we re on hold right now. this is not a market where you say, the wheels a
strong momentum, or start taking chips off the table, recognizing there is a cap on the upside? they sounded the alarm that it s all clear, the fed is not going to allow the expansion to come to an end. i m not saying that we can t rally further, but this idea that volatility will be low and there will be no issues the rest of the year is crazy, especially when the same people saying that said the exact opposite a month ago. having the optionality to take advantage of these type of dislocations, that is fast and furious because of the liquidity in the market, it is very tenuous. have things gotten a little frothy? yes. but if you look at the underlying economy, it s still strong. credit spreads are tightening. if you look at what the fed is saying, we re on hold right now. this is not a market where you say, the wheels are falling off the cart. jonathan: joining me in new york is kathy jones, subadra rajappa, and coming to us from london is diana amoa, fixed income po