WASHINGTON: We found it difficult to come up with regular commentary on the action of stocks and bonds in the trading week just ended. Markets seemed madly driven by negative, scare headlines, many of them anti-Trump lies and innuendoes. Wall Street, as well as its component stocks, bonds and averages, jolted up, down and sideways along with the news. Daily stock movements were hard to predict or fathom.
That’s not surprising. The scare headlines phenomenon has actually prevailed since the morning of November 9, 2016. On that memorable morning-after, Donald Trump emerged victorious in the U.S. Presidential Sweepstakes. That entirely unexpected event shocked the world, his country, and Washington’s deeply-entrenched Deep State to their collective cores.
The Deep State-run media, the entrenched, pro-Democrat Washington bureaucracy and – if truth be told – both political parties, have yet to come to grips with the fact that a convincing electoral majority rooted in flyover country took over the White House by electing a bombastic commercial real estate tycoon and reality TV star to the highest office in the land.
Worse, although he ran under the Republican banner, he seemed to have spent most of his life as a liberal Democrat. But the increasingly Marxist-driven Democrats wouldn’t adopt this capitalist and wouldn’t take him back after his victory. Nor would snitty Republicans, who’d have rather nominated another John McCain or Mitt Romney – cannon fodder slated to lose to the inevitable next Democrat president, Hillary Clinton, the Smartest Woman in the World and perhaps the most brilliantly qualified human being ever to inhabit this planet since the dawn of time.
For that reason, all of the above have been engaged in a sustained, collective temper tantrum, the likes of which we’ve never really seen in this country since the Civil War. Nothing will temper this tantrum, the results of which have been the partial paralysis of the Federal government, the guts of which, by and large, have striven mightily now for some 18 months to completely disable this presidency.
They all thought they’d have gotten rid of Trump by now, just the way they’d gotten rid of that villainous anti-Communist scourge Richard Nixon back in 1974. But even that phony, ginned-up, scare headlines driven special counsel investigation, meant to panic Trump into resignation, has turned upon itself. It threatens to devour official Washington.
In a vain effort to support that failing venture, the MSM has been engaged in a nonstop anti-Trump smear-and-slander operation since that fateful November in 2016. In so doing, they’ve consistently lied, slandered, distorted and fabricated so many stories that the public at large has ceased to either watch them or believe a word they say.
The Deep State-Media Combine’s diet of scare headlines and anti-Trump lies keeps derailing the market
The entire Deep State-Media Combine has been pummeling Americans 24/7 with scare headlines based on anti-Trump lies, one after the other. Virtually every single story, with few exceptions, is all Donald Trump hatred, all the time. And this, unfortunately, has extended into the once relatively nonpartisan business media fiefdom.
CNBC, in particular, peppers its website every day with masses of scare headlines predicting an endless chain of business and individual disasters, all predicated on the evil and stupidity of that somehow illegally elected anti-President Donald J. Trump. There are days when 9 out of 10 front page scare headlines on CNBC’s otherwise useful website are twisted into anti-Trump lies, memes and slogans. That even happens when the actual content of the stories is at considerable variation from the phony headlines.
As for positive economic news – and there has been a lot of it – it’s all (or mostly) missing in action. It’s exasperating every day to pick through all the nonsense for some actual, useful news upon which to base sound business and investing decisions.
Worse, when you’ve puzzled together the real stories behind a few stocks or industry sectors with the potential to make you a little money and buy a couple hundred shares, another fake-news disaster flashes across your screen. The moment it does, the supposedly smart but brainless computerized investing programs that infest institutional Wall Street flash mass-sell signals, and voilà! Your carefully, rationally selected and likely very good investment gets hosed.
So we can short stocks, right? Wrong. Stocks still keep struggling to come back after they get hit, making the bear-market strategy of short-selling, even vs. an impending disaster like Tesla (symbol: TSLA) a potential suicide mission.
China and Little Rocket Man: Headline-driven markets are an investor’s nightmare
Last week was a prime example of this hysteria-driven market. It had even the most seasoned professional investors throwing up their hands. True, the market has always possessed a strong, irrational component. But a wholly irrational trading environment, constantly on edge and made ever more nervous by each incoming barrage of fake news… Well, for rational investors, stocks have been fast turning in to a no-go zone.
This week, markets were petrified by the topsy-turvy reportage following the Chinese trade negotiations. These were, of course, linked to the antics of Little Rocket Man. LRM suddenly decided to have a temper tantrum of his own after spending a couple of weeks making nicey-nice to his southern neighbors and even that Great Satan, the United States. Any chance the wily Chicoms put the Kimster up to that to screw up Trump’s trade negotiations?
Nahhhh. Must be Trump’s fault.
Iran’s Mad Mullahs and more anti-Trump lies
And of course, there’s always that gang of Mad Mullahs from Iran. They easily hornswoggled the willfully naïve Barack Obama into making a stupid, unenforceable “deal” with them. It would help “prevent” their development of nuclear weaponry. But of course, they’ve gone back on the rhetorical warpath again. They currently threaten the U.S. and Israel by promising to have billions nukes aimed at both countries, maybe in less than 24 hours. So much for “peaceful” nuclear nonproliferation. The Mullahs, of course, never stopped developing nukes and missiles anyway.
The fear now is that Iran’s oil will quickly come back off the market. Add to this the inability of the Marxist thieves running Venezuela to profit from that country’s abundant oil reserves. The failure of these criminal regimes caused international oil and gasoline prices to skyrocket at an alarming rate.
It’s all Trump’s fault, of course. Except that it’s really Obama’s, for penning a stupidly naïve “deal” so he wouldn’t need to deal with Congress. So much for that trick. Nothing has changed, really. Except for that vast bag of cash Obama sent the Mad Mullahs. They, of course, promptly funded military operations in Syria with the money rather than helping out their own economy.
Yet it’s all Trump’s fault for exposing the whole sick game for what it is. So stocks plummet again, while the price at the pump goes up. And, oh yes, it’s still Trump’s fault. So sell, sell, sell.
It’s frustrating. And yet, in 2018, it’s more fake headlines, more anti-Trump lies. Just another day at the office.
About Wall Street’s Week.
Oh, yeah, the S&P 500 and the NASDAQ closed down on Friday as a result of all of the above. But the Dow Jones Industrials inexplicably rose slightly. That minor blip rode upon nice rallies in Boeing (BA) and Caterpillar (CAT). Truth: American industry is still doing quite well under that crazy Donald Trump.
See you a bit later this week. We’ll try once again to piece together some kind of rational, irrational investment strategy for you.
— NOTE: Headline cartoon by Branco. Reproduced with permission and by arrangement with Legal Insurrection.