Two news items that will buzz throughout the week actually have greater long term implications and are intricately linked to one another. News Item #1: Jeff Bezos sees drones delivering parcels within five to ten years. News Item #2: Fast food workers prepare one-day strike, demanding $15 minimum wage.
This is the kind of guilt-driven idealism, which is pushing the political needle and influencing elections around the world. Unfortunately, the outcome is often that those without means are demanding that those with means to "share" through higher taxes.
Although the debate over whether corporations are people continues to rage (or simmer depending on your point of view), there is no doubt a corporation is a reflection of people. The underlying stock of a company goes a step further, serving as a proxy for mood and potential and providing a glimpse into the future.
This is the season of rejoicing, reflection, and remembrance, which can often lead to a change in lifestyle and beliefs. Already, we have seen a groundswell of Americans change their minds about the new healthcare law, and we would like to see it delayed, curtailed or dismantled.
The Dow cracked 16,000, and there wasn't any fanfare. There was no confetti or balloons, and the New York Stock Exchange didn't book Kool and the Gang to get down from the balcony. The most unloved, most stealth rally in history continues to rock, but the news is barely a blip on Main Street's radar.
I’m not going to call anyone that is calling for a market crash a financial terrorist, but many that do make these calls are professionals that profit from disaster in markets. And, there are large swaths of people that never liked the rally from the beginning.
Of course, I'm not saying approach investing with reckless abandon, but I am saying approach investing with a greater sense of confidence. The world isn't going to end with occasional losses or positions that don't work out immediately.
I'm not sure who had the worse week -- Rob Ford, mayor of Toronto and King of all jerks in the Great White North, or Barack Obama, President of the United States and King of the new healthcare law.
Well, last night an interesting battle for the best double speak and smoke-blowing became intense after Cisco (CSCO) posted its earnings results. Already, with a substantial lead, was Kathleen Sebelius and her belated update on how many people have actually enrolled in the new healthcare exchanges. Here's a hint...not many.
The market is gyrating a bit, and that's natural for the kind of run experienced over the past five years, but the growing chorus of bubbles and crashes make normalcy more unnerving. This harkens back to the famous (or infamous) irrational exuberance comments from Alan Greenspan.
The fact is Friday's session might have been the most significant this year. It was the first time stocks rallied on "good" news after first tumbling over tapering fears.
It was one of those days when the stock market was open, but we're reminded of so many more important things. I have to give a shout out to my father and all the other veterans including Richard Overton who volunteered in 1942 and saw service in the Pacific.
I'm so sick of actors, singers and athletes downplaying the drive of others and the virtue of paying lots of taxes. Perhaps they are cleansing some guilt-ridden part of their soul or just playing the game, but I wish they would shut up.
In fact, there is more talk of a bubble from smart people that have mixed track records (If that sounds oxymoronic it's because on Wall Street certain masters of the universe are ordained, and they can be wrong over and over again until they're right and the adoration begins anew).
That was an ugly close for the second session in a row reflecting a number of things including a fair amount of confusion, matched or surpassed by frustration. I continue to say Fed news should be interpreted as a red flag for the US economy.
Rep Mike Doyle (D-PA) bragged about the fact his 33 year old self-employed kid will be able to get cheaper healthcare insurance (which the congressman currently pays). Let me get this straight! A congressman earning $174,000 a year and paying nothing for his own health care insurance thinks it's okay for taxpayers to lessen his load?
Moreover, the stock market isn't just a place that displays success it also displays redemption. Real hope rewarded. Real vision and sweat and accomplishment are rewarded, not demonized.
The Robin Hood Tax is once again on the table in Europe. The scales will never be balanced with the paternalistic approach of the left, whose anger at the system overrides any good intentions, even when that very system has served them well.
"I will not yield to this monkey court or whatever it is" -- Frank Pallone (D) from New Jersey used a word that only a democrat is allowed to use in Washington during hearings to get to the bottom of the Obamacare exchange fiasco.
The market is kind of stuck. Although bias remains to the upside, there is some anxiety over the next catalyst. Fast money has been rotating out of high Beta names, but the good news is lots of that cash has skipped the sidelines, opting to be parked in blue chips.
Hussman's Open Letter to the Fed; The Problem with Bubbles; Textbook Pre-Crash Bubble; Reflections on Not Chasing Bubbles; Integrity vs. Respect | Mike Shedlock