Morning Commentary
Last week was bracketed with big companies behaving badly and many being called into account. There were lawsuits and stock selloffs and shocking revelations. While the stock market reacts as a proxy for society, the recurrence of these issues by many of the same companies could not only have long term negative impact to specific businesses and industries but could inform political actions and new rules of the road.
The bottom line is corporate malfeasance exist to generate or protect profits.
Corporate malfeasance is when an employee of high regard such as, an officer or executive member, commit a wrongful or unlawful act. The act can be anywhere from unethical to illegal. These acts are committed with the knowledge their acts are wrong, but they intentionally carry them out anyway, regardless of the consequences, not only to themselves, but to the corporation, the community, and their families. Study.com
Most cases of malfeasance are byproduct of negligence, ineptitude or need to cover up accidents and mistakes. There is a growing sense this corporate malfeasance is now woven into the culture of certain industries and individual companies. This week mixed into news of corporate earnings and economic data on housing and consumers will be legal updates and further investigation of breaking allegations.
History is replete with big businesses that have been bad actors from working with Nazi Germany, to poisoning their people that worked in and around their factories, to even their customers. Many of those businesses are still around, having weathered those ugly incidences.
I would caution big business, however, to do better at self-regulation before the public empowers politicians that hate capitalism to rein in malfeasance.
Earnings & Economic Data
This week we’ll learn a lot about consumers via earnings from big names like Chipotle (CMG), McDonalds (MCD), and Amazon (AMZN) and updates on existing and new home sales.
There is a good chance the market could breakout to new highs this week with an avalanche of earnings and other data, but there is a limited amount of time before major indices would have to pullback at least 5%. I think the pieces are in place to breakout, and it could have happened already except for dumb nonsense from the likes of Boeing and Johnson & Johnson.
Portfolio Approach
Communication Services |
Consumer Discretionary |
Consumer Staples |
1 |
3 |
2 |
Energy |
Financials |
Healthcare |
1 |
2 |
2 |
Industrial |
Materials |
Real Estate |
3 |
1 |
1 |
Technology |
Utilities |
Cash |
3 |
0 |
1 |
Comments |
I agree with you on Corporate malfeasance and the need to give them a little Harry Truman guidance at times. This is the time. I'm a retired Lockheed employee and I own some shares of Boeing. I couldn't believe what Boeing did and then the way they acted when it became clear something was not right. I say I can't believe it, but I saw a lot of bad things go on near the end of my career. In some cases there is too cozy of a relationship between what should be private businesses and the government. Robert Clanton on 10/21/2019 10:43:39 AM |
The worst thing that could possibly happen is government getting involved with new rules... Every body loses much more than the cost of the malfeasance... The problem is not so widespread else the entire industry would have crumbled... Like every other aspect of life in America there is no accountability for the bad players when they get to the top echelons be it in business, culture and politics... The People have to demand the Rule of Law be enforced before there is total destruction of our way of life in this free market system... Andrew B Newallo on 10/21/2019 11:30:40 AM |
One need only recall what happened with financial institutions during the 2006-2008 meltdown to realize leaders of such businesses can "act badly" and get AWAY with it....in spite of all the public outcry that occurred during and (for a long time) AFTER these "players" got away with their shenanigans and received no reprimand or penalty for their actions. (Remember...they nearly brought the entire financial world crumbling down due to their maleficence. James Warlin on 10/21/2019 1:27:13 PM |
Tweet |
4/26/2024 9:39 AM | BIG TECH STEPS UP |
4/25/2024 1:16 PM | Don't' Bury me, Yet! |
4/25/2024 9:27 AM | THERE CAN ONLY BE ONE |
4/24/2024 1:30 PM | Earnings Flood In |
4/24/2024 9:26 AM | BUYING THE DIP |
4/23/2024 1:25 PM | Bloom Off Rose |
4/23/2024 9:32 AM | WHAT HAPPENED TO THE BRAVADO? |
4/22/2024 1:22 PM | Pins and Needles |
4/22/2024 9:30 AM | LIVE BY THE SWORD … |
4/19/2024 1:20 PM | Fair Chunk of Rotation |
4/19/2024 9:35 AM | DON’T OVERREACT |
4/18/2024 1:37 PM | Didn’t Break Down |
4/18/2024 9:40 AM | MARKET OFF SCRIPT |
4/17/2024 1:59 PM | Facing Pressure |
4/17/2024 9:37 AM | POWELL STILL WANTS TO HELP |
4/16/2024 1:35 PM | Muted |
4/16/2024 9:42 AM | FEAR ARRIVES |
4/15/2024 1:17 PM | Making a Statement |
4/15/2024 9:45 AM | Equal Opportunity Drubbing |
4/12/2024 1:37 PM | Pressure Overall |
4/12/2024 9:42 AM | WHO YA GONNA CALL? |
4/11/2024 1:38 PM | No Urgency |
4/11/2024 9:27 AM | Tough Sledding |
4/10/2024 1:22 PM | Hang In There |
4/10/2024 9:51 AM | HERE COMES THE LATEST RATIONALE FOR PERSISTENT INFLATION |
More commentary archives |
Home |
Products & Services |
Education |
In The Media |
Help |
About Us |
Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.
|