16 February 2017

MacroView: A Political Assassination, Yet Major Indexes' 5th Record Close

“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”--Warren Buffett

MacroView |  ©2016 DomainMondo.com
Domain Mondo's review of  macro economic and investing news:

MacroView Feature • Political Assassination, Yet Major Indexes' 5th Record Close:

•  Major U.S. stock market indices continued their extended Trump Rally run on Wednesday, February 15, 2017: Stocks set another round of records as Trump pledges ‘massive’ tax plan | MarketWatch.com"Major indexes see record close for 5th session in row"--
S&P 500 Index up 8.6% Nov 9, 2016-Feb 15, 2017 (source: google.com)
Nevertheless count me out--alarms are going off--is anyone listening?

The Political Assassination of Michael Flynn | Bloomberg.com: "... it's strange that Flynn's "lie" to Pence would get him fired. It doesn't add up ... In the end, it was Trump's decision to cut Flynn loose. In doing this he [Trump] caved in to his political and bureaucratic opposition. Nunes told me Monday night that this will not end well"First it's Flynn, next it will be Kellyanne Conway, then it will be Steve Bannon, then it will be Reince Priebus," he said. Put another way, Flynn is only the appetizer. Trump is the entree."

•  Americans Just Broke the Psychologists’ Stress Record | Bloomberg.com"A national survey of anxiety finds a statistically significant increase for the first time since it was launched in 2007."

•  S&P 500 Hits Record $20 Trillion Market Cap As Warning Signs Mount | SeekingAlpha.com

•  Inflation Alarms Expose Vulnerability in Richly Priced S&P 500 | Bloomberg.com

•  Goldman Warns of China Economy Risks During Year of the Rooster | Bloomberg.com: "... economists warn that a push to rein in cheap loans will weigh on key sectors such as housing. Officials are trying to keep a lid on frothy house prices without harming the wider economy, where growth remains heavily reliant on government spending. The scale of the lending boom was laid bare in data Tuesday ..."

•  Trump and Markets: ".... we are in the business of managing assets, and politics impact that business whether we like it or not. We still have a cash reserve, but it is smaller than before, and we are mostly back in the markets and watching the rally extend itself. Our positions could change at any time."--David R. Kotok, writing on ritholtz.com Feb 8, 2017.  See also It's Worse Than Bush Derangement Syndrome | RealClearPolitics.com: the dreaded mental disorder known as Trump Derangement Syndrome -- a/k/a TDS.

And I haven't even gotten to Europe and its myriad problems--Caveat Emptor!

Also, it's not just Trump and the Republicans and Democrats and media in D.C.:
•  How Democrats broke Illinois, a state beyond hope--read Special Report: The man behind the fiscal fiasco in Illinois | reuters.com, excerpt--"... As [Illinois House of Representatives] speaker for all but two years since 1983, Madigan has directed the fate of key pension, labor and tax laws. As state Democratic Party chairman since 1998, he has shaped the fortunes of his allies and stymied opponents ... Madigan’s Illinois is the state that doesn’t work. The speaker is one of America’s most powerful politicians, presiding over arguably its most dysfunctional state capital. Illinois is beyond broke. It is the first state in eight decades to go without an annual budget, according to the National Conference of State Legislatures. Its bond ratings, the lowest of any state, are near junk status. It is projected to have a budget deficit this fiscal year of $5.3 billion and owes vendors about $10.8 billion in unpaid bills ..." (emphasis added).

This could all get ugly, real fast.

One Last Thing: If nothing else, invest like you would Ride Downhill on a Bicycle | NYTimes.com: The bike follows your vision, so look where you wish to go, scanning the road ahead so you will have time to prepare and glide calmly past obstructions.

-- John Poole, Editor, Domain Mondo 
This may be the last MacroView posting (at least for awhile), I need a respite from all the drama and insanity right now in D.C. Full disclosure: At present I'm out of the stock market and have no intention in the short term of getting back in, but for index funds and Berkshire Hathaway.

feedback & comments via twitter @DomainMondo


DISCLAIMER

No comments:

Domain Mondo posts: