WASHINGTON, Nov. 16, 2015 – What a strange and awful Friday the 13th weekend we’ve just experienced. From sports fans to pop music lovers, everyday Parisian citizens were mowed down by the dozens without warning last Friday by an organized, professional gang of Islamofascist mass-murderers.
For the lefty head-in-the-sand elites, this was another example of the tragic yet always unexpected butchery you can expect from those upright ladies and gents of ISIS, the Middle East’s most prestigious current hydra-headed brand of psychopaths. Will they learn this time?
Meanwhile, for some strange reason or reasons, beleaguered U.S. stocks have caught a healthy bid Monday and are up sharply in the final hour leading to the 4 p.m. EST closing bell. Are we back to “bad news is good?” Before we answer that one, let’s take a look at this week’s unavoidable political news.
War and politics dominate market news and action
The French government certainly took off the gloves with breathtaking speed, promptly sending a selection of Syrian-located ISIS command buildings—or, more specifically, the soulless, sub-human torturers, rapists and murderers within—off to enjoy their 72 virgins. A hearty bon voyage to these swine.
Wooly-headed European government autocrats are once again being forced to re-examine their “no borders” brand of socialism, which, like President Obama’s version in this country, is clearly allowing swarms of multinational Islamofascist criminals and mass-murderers into the Eurozone.
Worse, as those governments have just learned, ISIS almost certainly has ready, willing and able cells already in place and set to launch the next European murder-fest in motion the moment they get that long-awaited untraceable cell phone call from the Middle East.
It’s been obvious to us that numerous sleeper cells already have the capacity to make the Parisian Friday the 13th slaughter-fest look like the proverbial Sunday school picnic. The biggest surprise, though, seems to be that news like this is a surprise to Europe’s rich and wealthy socialist oligarchs.
Not that America’s own Fearless Leader, Emperor Barack the Clueless, is doing any better. One by one, an increasing number of U.S. state governors are banning the importation of the Syrian refugees the Clueless One has glibly invited to these shores—a cadre that surely includes more than a few secret ISIS massacre specialists looking to help out on the holiday murder-fest the ones here are already planning.
Emperor Barack’s response—attack the GOP governors who are doing their best to protect their citizens from the obvious potential threat, even though ISIS has almost certainly imported enough terrorists to blow up several malls, parades and sports venues, courtesy of Obama’s southern U.S. Welcome Mat policy.
According to CNBC,
The attacks have led several GOP governors, including Asa Hutchinson of Arkansas and Greg Abbott of Texas, to vocally oppose the relocation of Syrian refugees into their states.
Some GOP leaders, including presidential candidates Jeb Bush and Sen. Ted Cruz, have said that only Christian refugees should receive any U.S. assistance. And Donald Trump told CNBC on Monday that letting them in ‘would be one of the great Trojan horses.’”
Gosh, ya think, guys? (Great analogy from The Donald, BTW.)
But hey, it’s all political, all the Republicans’ fault. Right, Mr. “President?”
At the G-20 meeting in Turkey, Obama said: “When I hear folks say that we should just admit the Christians but not the Muslims, when I hear political leaders suggesting there will be a religious test for which a person fleeing from a war-torn country is admitted … that’s shameful. That’s not American.”
To the contrary, we’d argue that it’s “not American” to open the doors wide and admit unknown numbers of potential terrorists from an ISIS hotbed, some of whom would clearly pose as Christian refugees, the better to get into the U.S. with little suspicion or scrutiny. That is obviously the GOP candidates’ point. But never confuse our Marxist Ideologue-in-Chief with the facts. Like Karnak, he knows all, sees all. It’s hopey-changey all the way, and it’s giving willful ignorance a bad name.
Weekend news makes for a surprising Monday impact on U.S. stocks
Like many investors, we expected that Monday’s opening trade would continue the hemorrhaging that accelerated in late Friday afternoon action once the first horrific reports from Paris began to cross the wires.
But, as always, Mr. Market decided to confound nearly everyone by putting on a happy face. This is likely causing the rout of a ton of shorts that were laid on in late Friday trading action in anticipation of even worse trading action Monday. Perhaps the algos and HFTs are also figuring that, added to the China mess, the latest new black swan event, this time coming out of Paris, will stay the Fed’s not-so-invisible hand for at least another few weeks or months from punching the “Raise Interest Rates” button.
Another possible technical reason for this bizarre 180 turn: Friday, markets finally achieved a short-term, deeply oversold condition at the close, a chart feature that almost always (but not always) will trigger at least a brief and sometimes fierce onslaught of buying. That may be part of today’s surprisingly positive market tone.
Long-neglected “safe trades” may be catching a bid today as well. This includes investments like high-quality bonds, blue chip stocks, stocks in the utilities and consumer durables sectors and gold, all recently hard hit by interest rate fears. It’s that proverbial “flight to safety,” thing we may be seeing today.
You have to stay invested in something in order to make money, although that tried and true thesis has been sorely tested in 2015. So we continue to hang in there, although we remain about 40 percent in cash. We’ve trimmed some small losing positions, but are nibbling at a small position in Old Republic Insurance (symbol: ORT), a rather boring company that’s been on a real earnings tear lately, making it very attractive. (Not to mention its swell dividend.)
Otherwise, we’re waiting for the literal and figurative smoke to clear before coming back out of our bunker.