US stocks get hammered Tuesday as WHO pushes new Covid terror tales
WASHINGTON, April 21, 2021 – For over a year now, one governmental health organization or another tends to push new Covid terror alerts every time international economies seem on the verge of recovery. Today, Tuesday, is another example. I’m sitting at my computer this afternoon watching US stocks get hammered relentlessly, as that always reliable, Chinese-dominated UN agency known as WHO stuck its nose right in the middle of growing economic recovery optimism, as CNBC reports.
US Stocks get hammered by WHO. Particularly travel issues. Surprised?
“U.S. stocks fell for a second day on Tuesday as strong corporate earnings failed to boost a market already near record highs, while an alarming rise in global Covid cases raised concerns about the recovery.
“The Dow Jones Industrial Average fell 350 points as Boeing and Nike both dropped more than 4%. The S&P 500 lost nearly 1%, while the tech-heavy Nasdaq Composite dipped 1.1%.
“Reopening plays such as airlines and cruise line operators led losses on Tuesday. United Airlines plunged 9% after the carrier reported its fifth consecutive quarterly loss and said that business and international travel recovery is still far off. American Airlines fell 6%, while Carnival, Norwegian Cruise Line and Royal Caribbean all traded about 4% lower.”
Investing in almost any travel-related company continues to lead to investor heartbreak and despair. Every savvy investor knows that recovery in the travel industry, post-Covid (assuming there will ever be a post-Covid) is a crapshoot at best.
More Covid terror from the usual suspects
On the other hand, every savvy investor also knows that every recovery rumor of late has been invariably followed by dire warnings from those always-reliable Chinese lackeys running WHO. Or even worse, by the American government lackey generally regarded as responsible for sending big taxpayer bucks to that notorious W___n lab in China, the Fabulous (Dr.) Fauci.
But it was WHO (or “the WHO”) that sent fear into the hearts of investors at Tuesday morning’s opening bell, according to that CNBC report.
“The sell-off in shares that are tied to a successful reopening came as the World Health Organization warned that global coronavirus infections were edging toward their highest level in the pandemic. In the U.S., while the country is maintaining a pace of 3 million reported vaccinations per day, about 67,100 daily new infections are still being recorded.”
You’d almost think there was some conspiracy out there to prevent both America and other Western governments from getting people back to work. In point of fact, vaccinations continue to increase in most countries and will keep doing so until most people gain at least temporary protection from Covid-19.
Got Covid Terror Syndrome? Buy more masks
Plus, what no one tells you is that the never-ending masking of the world’s population only proved useful, early on, in the older Boomer demographic. Masking becomes more and more meaningless as more and more people become immunized against the coronavirus. Simple fact: Covid-19 and its friends – just like the flu we’ve lived with since the waning days of World War I – will always be with us. Neither the CDC nor WHO bothers to mention this obvious truth.
In the end, I suspect that today’s selloff is really related to continued profit taking after the stock market’s bout with irrational exuberance. That said, the carnage remains nasty Tuesday afternoon. Tech stocks and the NASDAQ continue to endure the most abuse this week, a pattern that first emerged in March.
Other US stocks get hammered, too
We remain pretty fully invested, nonetheless, though our techs and our energy holdings continue to endure waves of selling today. Our holdings in defensive tobacco stocks stand at 50-50 today as well. This despite renewed rumors that the pro-business Biden Junta may decide to renew plans to kill off menthol cigarettes. They also want to force tobacco companies to lower nicotine content – the only thing that makes this awful habit enjoyable. And profitable.
As mostly amoral investors, we generally buy into tobacco stocks during troubled economic times, as tobacco (along with alcohol) remains a reliable “sin investment” whose sales tend to pick up during tough times, like our current increasingly fake regime of rolling lockdowns and mask mandates. Better yet, yields on the tobacco stocks tend to approach the yields you’d get on speculative junk bonds, making them even more attractive as other stocks plummet. Except that today, it was tobacco stocks’ turn to get hammered, just like the travel issues.
Altria (NYSE:MO) suffered a trip to the woodshed today. Ditto another of our holdings, British American Tobacco (NYSE:BTI). Miraculously, another of our holdings, Philip Morris International (NYSE:PM), remains up nearly 3 points on the day. It boasts a handsome 5.25% dividend, BTW. Why did sellers skip PM? It sells products in the international market, not the US.
So don’t let the Dark Side’s Covid terrorism nuke your portfolio
Aside from plays like this, Mr Market remains hazardous to your health today. With real-life Washington being run by a cadre of old Obama Era grifters who daily shove stuff in front of an addled pretend president to sign, American policy, national and international, is severely adrift as international players – particularly enemies of the US – continue to take every advantage they can of a non-presidential Washington that’s currently in the thrall of a virtual communist junta.
Are we exaggerating? Hardly, just as long as you don’t believe any of the lies you see and or read by the old line media gatekeepers. The whole situation is hazardous to this country’s health. And markets are prone to get nervous every time they get a reminder of this.
Everyone seems convinced that countless Antifa / BLM cells are ready to erupt in American cities. The planned violence likely materializes as soon as a frightened Minneapolis jury announces its verdict in the George Floyd case.
From Covid terror to violent income redistribution
We can guarantee that anything less than the hanging, drawing and quartering of former police officer Derek Chauvin becomes an instant cause célèbre. One that results in rioting, mayhem, arson, looting and probably a few shootings. Seditionist US Representative Auntie Maxine Waters ensured this with another incendiary rant delivered in person in already terrified Minneapolis. UPDATE: The jury threw the whole book at Chauvin after we finished this piece. But the judge broadly hinted that, given Auntie Maxine’s incitement to riot, an appellate court may review this verdict next. NB, the riots did indeed erupt. But in fewer cities and with a bit fewer peaceful arsonists.
I suspect that this, too, spooked markets Tuesday. Investors nervously await the next round of destruction that the Biden Junta and Blue State governators refuse to deter. Markets hate uncertainty. And uncertainty is something that’s on the way this year. Big time. It might be a good time to enter a few GTC (Good ‘til Canceled) stop-limit sell orders just in case.
We’ll be back here as events warrant this week.