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Afternoon Note

This is Big (Maybe Too Big)
By Charles Payne, CEO & Principal Analyst
6/16/2017 1:26 PM

The market mostly spinning its wheels and trying for equilibrium after that blockbuster deal with Amazon announcing its intentions to purchase Wholefoods for $13.7 billion.  One of the consequences is that consumer staples may not been seen as a safe haven anymore as the industry meets with the disruptive nature of technology and new thinking that focuses on eyeballs as much as the bottom line.

There is a chance additional bids come from Wholefoods and certainly brick and mortar names will need to become desperate in actions to stay alive.

Meanwhile, Industrials and materials continue to act great – I’ve implored everyone to have outsized exposure. Energy is oversold and there is rotation there as well.

Sector Performance

% Change

S&P 500 Index

-0.10%

 

Consumer Discretionary (XLY)

-0.28%

 

Consumer Staples (XLP)

-1.37%

 

Energy (XLE)

 

+0.86%

Financials (XLF)

 

+0.16%

Health Care (XLV)

-0.09%

 

Industrials (XLI)

 

+0.17%

Materials (XLB)

 

+0.04%

Real Estate (XLRE)

-0.03%

 

Technology (XLK)

-0.17%

 

Utilities (XLU)

 

+0.50%

 

Payne’s Passion beyond Dollars and Cents

In the aftermath of Edward Snowden, NSA and overbearing government many folks have come to the conclusion English author George Orwell’s nightmare tome was inevitable. His book “1984” predicted among other things:

  • Big Brother
  • Omnipresent government
  • Public manipulation
  • Newspeak
  • Telescreens

There is no doubt George Orwell got everything right, but one thing. Government isn't going to be Big Brother, I think it will be a combination of Amazon, Google & Facebook.

This isn’t about misgivings and concerns that already exist about business disruptions and conflicts including:

  • politics of CEO
  • crushing Main Street America
  • eliminating jobs
  • items they sell or support

“If you want to keep a secret, you must also hide it from yourself.”

Like Orwell’s telescreens, this is about electronic appliances that not only listen and spy on everything you say and do in private, but maintaining a recordings of those communications.

This is about these companies knowing you better than you know yourself and understanding how to manipulate that knowledge.

Newspeak is already happening, it’s the new language of acronyms, hashtags and emoji.

As an investor I have grappled with these notions for a long time because these stocks probably go a whole lot higher over time.  By the same token, I don’t want Alexa in my home.  This isn’t about being a Luddite or fear of change, this is about losing the kind of freedom we obviously take for granted because; unlike the NSA and other agencies, we are inviting these companies to spy on us.

They don’t need courts, warrants or even nefarious tactics. 

When it’s all said and done maybe Orwell captured the unavoidable choice the people of Western nations would have to make:

“The choice for mankind lies between freedom and happiness and for the great bulk of mankind, happiness is better.”


Comments
The ACX Crystal which rammed the right side of the USS Fitzgerald has a HUGE [very long] bulbous bow. When it collided with the US destroyer, the ACX Crystal punched an ENORMOUS round hole into the hull of the destroyer way below the waterline. Not visible at all in the photographs of the destroyer. BUT some [or ONE] of the photographs of the ACX Crystal SHOW THE UNDERWATER RAM ... THE BULBOUS BOW that did the damage. If I was a conspiracy theorist, I "MIGHT" say that the ACX Crystal deliberately maneuvered to ram the US destroyer below the waterline. Check the photo archives for the pictures of the ACX Crystal's bulbous bow.

Al M. on 6/19/2017 5:30:00 AM
 

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