WASHINGTON, March 22, 2018: As we write this column around Thursday noon Eastern Time, we find nearly all sectors and stocks wildly whipsawing to and fro. The Dow is madly ping-ponging between minus 450 and minus 500. HFTs, sellers and short sellers are marching stocks out back and shooting them all. We’re in the midst of Wall Street Hell Week. It’s those damned Trump tariffs that are to blame, right?
Wrong. Traders and investors will only believe that MSM fish tale if they’ve drunk the Deep State leftist kool-aid, believe anything that NBC and its affiliates, CNN, the NYTimes and the WaPo say or write, or have been lobotomized.
Donald Trump: Evil mastermind or America’s economic savior?
It seems everyone not banned or shadow-banned by Facebook (symbol: FB), Google (GOOGL) or the hard-left censorship committee of Twitter (TWTR) believes that President Trump is the source of all evil in the business world. The problem is that he’s merely reacting – at long last – to the longstanding sabotage of American goods and businesses. On one side, we face Chinese tech thieves and cheap steel pushers. On the other, we’re plagued by a tariff happy Eurozone, which never met an American export it didn’t promptly tax to death.
Clinton, Bush, Obama, and America’s economic decline
Bill Clinton gave away military and tech secrets to the Chinese during his second term. Conveniently this went largely unnoticed and unreported by the lamestream media. China later resorted to wholesale theft of America’s tech secrets during the Bush and Obama administrations.
Meanwhile, the Eurozone has all along dumped on the U.S. for “unfair trade practices.” That’s ironic. Europines have routinely penalized U.S. goods for years with a host of tariffs and other taxes. Their latest gambit promises to impose extra-special taxes on, oops, Facebook, Google, Twitter, et.al. And let’s not forget their attempt to claw back mega-billions from Apple (AAPL) and who knows what else.
The European anti-U.S. tech threat, combined with Facebook’s massively damaging personal data stupidity, has largely cut the head off Wall Street’s long-running tech rally this month.
(An interesting side note: The press lambastes the Trump campaign for “stealing” personal Facebook data for political purposes. Yet they praised the 2012 Obama campaign as tech geniuses for doing exactly the same thing. Today, if you don’t jot down every political smear you read, you’ll never connect the hypocritical dots.)
Anyhow, today’s market is apparently bent on savaging President Trump for defending this country from international trade thuggery. It’s the first time in decades that any American president has ever stood up for our workers and our superior products.
New World Order hearts Wall Street Hell Week
Unfortunately, this flies in the face of Deep State dreams and their support for the Soros-promoted New World Order. Once again, they’ve activated their wholly-owned media smear machine, and voilà! Markets are going nuts again today. Again, newly confident investors are losing their shirts to the HFT machines. Again. Wall Street Hell week is reborn again and again.
It’s tough trading and investing in this nasty market environment. U.S. corporate earnings continue to grow nicely, tons of long-time unemployed Americans are going back to work, and wages are finally starting to tick up a bit. According to numerous reliable sources, that’s the first time average American wages have increased roughly since the first millennials were born. But you’d never know this from the media or the markets.
This writer is old enough to remember when we’d all cheer for America. In fact, he’s old enough to remember when Democrats were the ones you could count on to support the average middle class American worker.
Those days are long gone. Today’s Democrats areably represented by Hillary Clinton, the poorest loser in political history. She and they wish the deplorable American worker would just die, already. The American worker stands in the way of the New World Order and the Soros-owned robots that will run it. Sadly, at least half of the Republicans in Congress actually long for the same thing.
What’s the investing endgame for 24/7 identity politics?
So we’re left with a spectacle like today’s market trashing. Worse, it’s blithely attributed to the first President in recent memory who’s ever given a s___t about his country. Every time stocks seem poised to pull out of a slump, it’s time for another Wall Street Hell Week. Perhaps these squalid spectacles are orchestrated at least in part by wealthy globalist elitists.
Yes, President Trump likes to go over the top. But how would you react to legions of wealthy, anti-democratic jerks who routinely trashed you and your friends 24/7?
This Wall Street nonsense is getting existential, just like Washington’s vicious game of identity politics. We had better pull out of this divide-and-conquer, Marxist-driven political frenzy soon. Otherwise, we’ll find ourselves fundamentally transformed into illegal aliens in our own land. Or maybe we’ll try to bust into whatever remaining countries still believe in truth, justice and, well, the American Way.
Let’s leave the Political and Wall Street Hell Week melodrama behind for a moment. Those who still own stocks (like yours truly) might want to look at hedging their portfolios a bit. We bought a tiny bit of the short S&P 500 ETF, SDS, before the Wednesday market close. Looking at today’s situation, we wish we’d bought a lot more. It’s up nicely today, but our SDS holdings are too small to completely hedge the damage to our portfolios.
Unless we see a sharp sea-change in attitude, we will add to our SDS position on any upswing. The press seems hell-bent on printing every negative, scurrilous rumor they can find. That means headline risk for portfolios remains extraordinarily high. Each consecutive edition of Wall Street Hell Week will take its toll.
It would be nice if markets would react to technical and fundamental analysis like they did in the old days. But those days may never return. So we have to follow the real or fake news headlines. We’ll just take a guess where the Deep State-inspired story lines will take stocks next.
It’s enough to turn a guy into a conspiracy theorist. But we’d never do that here, right?
*Cartoon by Branco. Reproduced with permission and by arrangement with Legal Insurrection.