Earnings are coming in better than expected.  While the cynics whine that the bar was low, keep in mind that of the 75% of companies that beat on the bottom line, 66% rallied in the next session.  That’s the highest level in five years, according to Factset.  This only underscores just how deeply “bad” news is baked into the markets these days. 

The notion of assuming the worst based on their own assumptions, and that of other mavens, is why the largest fund managers in the world are sitting at a decade-high level of cash. Even Warren Buffett is sitting on $128 billion.   A few articles pointing out that Berkshire has underperformed the board market since 2009 remind me of the time Buffett missed the tech boom and everyone wondered if he was past his prime.  Then tech went bust and the Buffett legend grew even more.   Buffett is up 958% versus 358% for the S&P since 1996, but he needs to make moves.

Berkshire Hathaway

Rooting for More Dollar Weakness

The Dollar Index (DXY) peaked on September 23. Since then, its come down to 97.30 from 99.38.

This morning the stock market is poised to rally higher on continued strength from economic data and continued positive news on the China trade numbers.

Portfolio Approach