4/30/2018
By Charles Payne, CEO & Principal Analyst

What is "As Good As It Gets?"

1- A single mother and waitress, a misanthropic author, and a gay artist form an unlikely friendship after the artist is assaulted in a robbery.

2- Conventional Wisdom that continues to derail stock market rallies (see Michigan Sentiment Report)

Investors began last week with the “high watermark” comments, derailing a rally attempt after extrapolating the comments from the CFO of Caterpillar to reflect the entire economy and the market situation. 

The Michigan Consumer Sentiment release reveals a massive tug of war between optimism over tax reform and pessimism over potential tariff and trade war.

Consequently, while the revised April report edged higher, current conditions slipped. The 2018 average of 98.9 is the second highest in the past 70 years (107.6 in 2000).

Where Do We Go From Here?

However, I say the best is yet to come. Moreover, there are many intriguing positives on the horizon, including peace on the Korean peninsula and new trade deals.

Before then, the market will grapple with a hard push by the Trump administration on tariffs with a lot of news expected this week.  We also get more earnings reports, the Federal Open Market Committee (FOMC) gathering, and the jobs report, too.

Chaheen Payne
Wall Street Strategies

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