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Afternoon Note

Is Democracy At Stake?

By Charles Payne, CEO & Principal Analyst
7/29/2020 1:28 PM

If there were no fireworks displays in your hometown on July 4th maybe, we will get some from Capitol Hill this afternoon.  It will not be a cage match the U.S. Attorney General found himself in yesterday, but emotions will be high, as the stakes are huge.

I have read and heard from both sides of the political aisle the very existence of these big companies is a threat to the Republic.

Unless these companies are broken up, they are going to be stocks to own or to buy on rare dips.  We took profits on Facebook (FB) in the Hotline Model Portfolio because they seemed the most vulnerable considering the slowing growth.  But the fact remains, these are giants that abuse their size and increasingly reveal internal bias they long denied existed.

Moreover, some are more brazen than others when it comes to limiting competition and abusing size and power (read Amazon).

But all these stocks are higher even after President Trump tweeted potentially using executive power if Congress continues to slumber through the issues.

The Other Message of the Market

It is a solid session with investors kicking those value tires again.  Beyond the S&P 500, stocks are making even more robust gains.  All the S&P sectors are positive, or flat.  Energy and Financials are the leaders, while Utilities lag.

S&P 500 Index

+0.84%

Communication Services XLC

+0.32%

Consumer Discretionary XLY

+0.84%

Consumer Staples XLP

+0.25%

Energy XLE

+1.18%

Financials XLF

+1.16%

Health Care XLV

+0.95%

Industrials XLI

+1.10%

Materials XLB

+0.59%

Real Estate XLRE

+0.89%

Technology XLK

+0.98%

Utilities XLU

0.00%

 

Comments
What will it take to get Conservative business men to spend the money it takes to compete with Comrades Bezos, Pichai and Zuckerberg? I'd love to spend money with conservative businesses like my little painting business but they just don't seem to exist. Float me a couple billion and I'll start one myself.

Greg Spradling on 7/29/2020 1:59:35 PM
I really dislike the government involved in private enterprise! However, Google FB Twitter etc. have overstepped their bounds in terms of control of our country and freedom of speech. They need to be controlled like other oligopolies through regulation. Very similar to current utility regulation. I never thought in my wildest dreams that i would say this!!

Richard Hanseen on 7/29/2020 2:13:07 PM
I'm with you Richard.  There should be major amendments to Section 230 and great action to curb inherent bias.  There should be greater scrutiny of acquisitions but breaking them up would be a mistake.  CP

Charles Payne on 7/29/2020 2:17:04 PM
AG Barr did a great job of explaining the defense of Federal Buildings against the mob. It is hard to explain how the democrats can believe the video shows a peaceful protest.

Jerry on 7/29/2020 2:17:55 PM
The Democrat Congressmen and women are not blind. They are deaf, but mostly dumb.

Sy on 7/29/2020 2:44:31 PM
 

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