Building sand castles is great fun on the beach until an unforeseen wave or wind bluff picks up a grain of sand or two to cause your beautiful monument of creativity to come crashing down forever, right before your very eyes.
The date of ‘the fixer’s’ testimony, also known as Michael Cohen may mark the catalyst for the stock market’s house of cards to take off in a different direction. Markets are most fond of consistency. But when uncertainty and lack of direction take place, it’s not uncommon for markets to search for a floor. Investors have been getting high on optimistic rumors. They are the same people who buy the rumor and sell the news.
Until February 26, 2019, the market has enjoyed 29 positive days out of 41 trading sessions in 2019, opined David Stockman, the same day. It’s the best start to a year since 1987, which is remarkable when investors take into account the collapse of the earnings outlook for the first quarter.
Unless I am mistaken, the forecast for earnings growth in September 2018 was 6.7%. By year-end 2018 that consensus was down to 3.3%. Today, it’s 1.7%. It could well be negative before we’re done. Yesterday, the “nominal” Institute for Supply Management survey reading that accounts for manufacturing and non-manufacturing has fallen over the past three months. The reading is now 13% lower than when the Great Recession started. It’s 19% lower than it was in February 2000, one month before the tech wreck started.
Now, let’s see how the coming debt ceiling roust plays out live and in color on television. Almost speaking in terms of winds and waves, these aren’t the only “crosscurrents and conflicting signals” Fed Chair Jerome Powell talked about before the Senate Banking Committee on February 25, 2019. As David Stockman, former OMB director, opined on the next day, “There’s also the fact that what we have here is a wheezing, debt-ridden, speculation-saturated 116-month-old ‘recovery’ that
Despite the Fed’s efforts to appease Wall Street, it is liquidating its balance sheet at the annual rate of $600 billion. And with the federal debt now crossing the $22 trillion mark earlier this month, there are compelling signals that there is an abrupt slowdown among China’s principal suppliers, both Japan
How can investor's be prepared for the yearlong US-China trade war that has no endgame in sight? Latest Media 200 N. Westlake Blvd., Suite 109 Westlake Village, California 91362-3783 805.495.2077 800.266.2077 888.WHY.BEPOOR Fax: 805.497.8342...
My audience may remember how early 2018 I referenced Jeffrey Gundlach, chief executive officer at DoubleLine Capital for saying he believed the market would gain 15 percent before finishing in the red. He certainly called the loss for the year. I enjoyed the...
How do you get top dollar for a run-down property after a loved one passes? Founder and CEO of Trust Properties USA, Paul Hargraves is here to tell us how. Latest Media 200 N. Westlake Blvd., Suite 109 Westlake Village, California 91362-3783...
Securities offered through Securities America, Inc. (SAI), Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Investors Advantage and SAI are separate entities.
Important Information from FINRA to consider before transferring your account. Trading instructions sent via email may not be honored. Please contact my office at (805) 495-2077 or Securities America, Inc. at 800‐747‐6111 for all buy/sell orders. Please be advised that communications regarding trades in your account are for informational purposes only. You should continue to rely on confirmations and statements received from the custodian(s) of your assets. The text of this communication is confidential and use by any person who is not the intended recipient is prohibited. Any person who receives this communication in error is requested to immediately destroy the text of this communication without copying or further dissemination. Your cooperation is appreciated.