WASHINGTON, May 19, 2017 – Avid traders and serious stock investors alike are almost certainly getting fed up with the capriciousness of “headline risk” on Wall Street as we head into another weekend fraught with opportunities for more fake news. With President Trump traveling on his first official Presidential trip abroad, look for the media to hail every informal comment by Trump to foreign leaders as an impeachable offense.
That said, the appointment of Robert Mueller as special
prosecutor counsel charged with getting to the bottom of the “Russian scandal” (Hillary’s or Trump’s?), this week’s Democrat-led media impeachment feeding frenzy has tapered off for now, and one unsurprising consequence is that bullish sentiment seems to be returning to Wall Street. Friday morning marks the second day of recovery from the stock market mini-crash that occurred earlier this week.
Take it all with a grain of salt. The dead-ender seditionists and Soros-paid thugs leading the “Resistance” will be back upon normal Americans soon enough, likely causing a series of ensuing market pullbacks. We will likely have to live with this stupidity right now.
But we shouldn’t let the nonsense take our minds off our Number 1 job as small investors: making money even as the elites try their best to take money away from us.
Traders eager to put the latest phony Trump scandal in the rear view mirror Friday are currently taking the Dow Jones Industrial Average (DJIA) up some 160 points (+ 1 percent) as we near the 1 p.m. hour ET. Resurgent industrial giants Boeing (symbol: BA) and Caterpillar (CAT) are leading the charge at the moment..
The S&P 500 is also up nearly one percent, with IT stocks taking the lead, with traditional industrials not far behind. The tech-NASDAQ, unsurprisingly, is currently not far behind, up close to 0.7 percent early Friday afternoon.
Political insanity in Washington transfixed investors and scared traders earlier this week. Today, this was all put in perspective by at least one financial guru quoted today by Bloomberg, as reported by the increasingly political financial column known as ZeroHedge:
“When Nassim Nicholas Taleb looks at President Donald Trump, he doesn’t see ‘a trainwreck.’ The real trainwreck, according to the trader turned author, is ‘unfettered globalization.’ That’s the real danger that members of ‘the resistance’ should be worried about, Taleb says during an interview with Bloomberg.
“While he may not be a staunch “anti-globalist,” at least Trump has promised to fix some things in system that, left unchecked, will sooner or later lead to wealth accumulating disproportionately at the top end of income earners as wave after wave of corporate consolidation lines the pockets of the transnational corporate class. When he wrote about the dangers of globalization in his book The Black Swan, ‘everybody cheered,’ Taleb reminds his host. But now, people are defining their views on globalization based on their blanket opposition to Trump, causing them to overlook an even more sinister threat to their economic well being.
“Trump could still prove to be a disappointment if he ends up abandoning his promises. But Taleb rejects the narrative of Trump that ‘some people’ – the readers of The New York Times and Washington Post – are buying into: That Trump tried to pressure former FBI Director James Comey into dropping the bureau’s investigation into Mike Flynn, and is on the verge of being impeached.
“Ignoring the ceaseless fearmongering in the media, Trump isn’t really that different from other politicians, Taleb says: The main differences are ‘his language and how he does things in an accelerated way.’
“‘Trump is not an idiot. There’s a logic to Trump that you can only get if you forget about the news and you look at Trump as Trump.’
“By vowing to fix America’s ‘metastatic’ tax code, Trump is on the cusp of accomplishing something truly remarkable by solving a problem 32 years in the making.”
(Bolding and italics via ZeroHedge.)
Taleb seems to be spot-on in his comments, at least today as we close out a very bumpy week for traders and investors. Again, we’ll have to prepare ourselves for more headline risk as the “objective” press furiously spins President Trump’s words and activities abroad over the next several days. But hopefully, we can end the week on a positive note at least in terms of our investments, though we’re still keeping our powder (cash) dry awaiting better bargains in the days ahead.