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5/21/2012 8:33 AM
By Charles Payne, CEO & Principal Analyst
And He who loseth wealth, loseth much
He who loseth a friend, loseth more
He who loseth his spirits, loseth all
The Dow closed down Friday for the 12th time in 13 sessions, the first time that's happened since October 8, 1974. Obviously, it's a red flag and a negative sign. I think it's more an indictment of lack of leadership and its potential impact on the economy than current economic circumstances. The dollar continues to surge against the inept Euro, and the more the dollar moves up, the more money leaps out of stocks and other assets into US treasuries or the sidelinesóboth very crowded places and both losers to inflation. Of course there is an argument that deflation is back in play, which I don't believe, but pessimism could make deflation a self-fulfilling event.
One thing is for sure, the market is drowning in a sea of doubt. There are a bunch of leaders clinging to the idea of redistribution of wealth, more debt, and less discipline.
If this is the end of the road, then it must be time to split the spoils. This has been part of the administration's goal from day one with redistribution policies that would be anything but mutually beneficial. Those who buy into the idea that taking the results of one person's hard work, sweat, and dreams and giving it to someone else that had nothing to do with the creation of that wealth have a misguided notion of how symbiotic relationships are supposed to work. In fact, it's not ideal, it's not fair, and it's not American.
There is a huge difference between helping unfortunate neighbors and simply taking money from one person that earned it and handing it to someone else in the notion of leveling the playing field.
Facebook is an anchor and is mitigating news out of China that might have sent our shares soaring. Instead the early strength in futures trading is fading, so we aren't going to force the issue. There is also a nice deal this morning, with ETN buying CBE for a hefty premium, but again I'm not sure it's going to be enough to offset the FB fiasco. Add to the mix the G8 and NATO summit were just as big of duds as the world's most exciting IPO.
I think the best thing we can hope for is no more big events by people with ulterior motives.
|Regarding 12/13 sessions that the Dow is down, and the last time this happened was the start of a phenomenal rally; all I can say is that was a different world. We had just had a president resign under the threat of certain impeachment for bad behavior (but not a provable crime). In the late 90's, we had a president released from impeachment even though the courts had found him guilty of a felony (perjury). Democrat immorality had made a big advance in those 20 years and has advanced more in the decade since. Rule of law has been replaced by political correctnesss and expediency. Truth has been replaced by charismatic convenience. The constitution has been replaced by folly of activist judges who ignore the historical outcome of their misgudied ideals. American ingenuity has been replaced by deceptive salesmanship (in selecting CEOs as well as conducting business). Ambitionhas been replaced by opportunism; the American Dream of earning the good life is now replaced by the American Demand of being given the easy life.|
With all that change, I agree with your silent statement that we should not expect another 16x run in the DJI over the next 25 years. On the other hand, we certainly do have a similar situation regarding leadership. In 1974, we were facing 27 months of Ford followed by 4 years of Carter. That certainly qualifies as lack of leadership. Now, we are facing 8 months of O-bum-a followed by 4 years of either the same bum or a different bum who has failed to show any real leadership in his campaigning. (I can not call be the craftiest name caller, slanderer, position flopper, or mud slinger as real leadership). Let's hope it is not a repeat of history, or we will be seeing inflation over the next 5 years that cuts the value of the dollar in half. Then everyone will have to double the numbers they gave last week as a definition of "rich".
Bob G on 5/21/2012 10:24:28 AM
|M. Zuckerberg personifies a Remora who feeds off Sharks,..., in a commensalistic repoire because his company relys on advertising income, or scraps, to survive.|
Grace on 5/21/2012 10:29:53 AM
|Mark Z = a rat; feeding secretly off the work of others.|
Dick Nicholson on 5/21/2012 10:48:01 AM
|Hyena devour anything a smart cookie. The PR and Investment banks got the DUMM POPOLUS again and that includes me, and are Happy to FEED their GREED.|
josef on 5/21/2012 10:51:33 AM
|that would be a Weasel, charles|
dennis logan on 5/21/2012 11:08:15 AM
|A panther--- A beautiful animal but one who slinks around only to pounce on the unsuspecting victim.|
Cheko on 5/21/2012 11:26:06 AM
md on 5/21/2012 11:39:12 AM
|You can't call him an AZZ because he made a lot of money so he must be a unicorn.|
Walt on 5/21/2012 12:16:46 PM
|a rabbit... dodging around, fairly oblivious except to stay alive, eat and reproduce, sometimes lucky, sometimes eaten whole.|
walter johnson on 5/21/2012 2:23:06 PM
|The Cheshire Cat!|
ed bradley on 5/21/2012 2:46:04 PM
|African Viper. Owning one can be intriguing and trendy. (IPO.) But the snake bite occurs, and you realize owning a snake wasn't such a good idea. (Trading begins.) The venom then slowly and surely courses through your vein causing loss of limbs. (Loss of $.)|
Dan H on 5/21/2012 9:45:35 PM
|A flea. As in billions of offspring.|
Patrick Crowley on 5/21/2012 9:46:30 PM
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