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Morning Commentary

Tales of Greed & Hubris

By Charles Payne, CEO & Principal Analyst
12/28/2020 9:35 AM

President Trump has signed the second largest spending bill in history, which piggybacked the misery and suffering of Covid-19 and draconian lockdowns to push through an assortment of pork that amounts to earmarks. The difference was in the past  massive pork spending was added onto bills to gain more ‘yes’ votes.  This bill is more of a jailbreak where there was little opposition to layering on pet projects.  Hence, it was every man and woman for themselves.

The market is happy with the news because the more money sloshing around, the more that will find its way to the bottom lines of income statements.  I just wish it had been more about helping households.  In that regard, I am crestfallen.

That being said, there is already chatter about making it right and passing another bill soon with greater focus on households.  Greater focus doesn’t mean regular Americans will be the priority, giving Congress another bite at the apple (the tell is eviction moratorium only goes one month further out).

The Brothers Grimm couldn’t have come up with a better story.

Meanwhile, Christmas shopping was only 2.4% higher from November 1 to December 24 from a year earlier.  I thought it would be higher and think earlier passage and more household help would have made a huge difference.

 Mastercard Spending Pulse™: Sector Snapshot

Expanded Holiday Season: October 11 – December 24

Total Retail Sales

E-Commerce

Apparel

-19.1%

15.7%

Department Stores

-10.2%

3.3%

Electronics & Appliances

6.0%

Furniture & Furnishings

16.2%

31.0%

Grocery

6.8%

Home Improvement

14.1%

79.7%

Jewelry

-4.3%

44.6%

Luxury (ex. Jewelry)

-21.1%

Source: Mastercard Spending Pulse measures overall retail sales across all payment types, including cash and check.

After sagging on Christmas Day, Americans took back to the skies with a strong increase over the weekend.  The numbers are still down significantly from a year ago levels, but it is heading in the right direction.

 Portfolio Approach

We are adding a new idea in Industrials, which takes our cash level to only 5%.  This is the kind of rally you want to be long, but also not afraid to take large gains, especially if the individual value proposition is changing.

Today’s Session

Lots fo chatter over the continued meteoric rise in bitcoin and those equity names associated with bitcoin.  Watch the so-called reopening trades. I prefer the term normalcy, which should have a strong session lead by airlines and cruise ships (we put NCLH back on the new buy list).


Comments
After reading Unstoppable Prosperity, we (my wife Sharon Marvel) began utilizing the tools and philosophy you taught us. In talking with my musician grown son about his retirement plan, I used the example of buying one set of drums, but buying many drum sticks and drum heads during his career. Then I transferred this idea to buying a Tesla versus buying stock in Lithium mines and Copper mines. I am still too early in my entry into buying stocks to have my portfolio balanced. But each month I have money going directly into Cash for future purchases. Thank you all for your great guidance. Dan

Daniel Marvel on 12/28/2020 10:14:11 AM
Thank you Dan for taking the time with such a thoughtfulemail. CP

Charles Payne on 12/28/2020 10:27:39 AM
Thanks for educating me, and keeping me informed.
Al

Al Drake on 12/28/2020 10:43:44 AM
https://twitter.com/i/status/1342866211315466245

speaks for itself

yet fauci who let the cat out of the bag this weekend said ( cnn i think but he said it i saw it)......" january will be a dark time"...didn't biden say "dark time"?.. fauci is nothing but a political animal sucking up to whoever is in charge of the Spotlight

now fauci says .....we can get back to some "form of normalcy by fall".....you mean we can't get back to normal Ever?......by fall everyone will have been vaccinated yet it's "some form of normalcy"?......they don't ever want to let this go

these nitwits....don't realize they are on the cliff of a massive uprising.... for them it's their own "Bubblemania"

sorry charles i don't mean to keep messaging you but the material is too plentiful.

prettydirect on 12/28/2020 10:47:15 AM
I haven't given up hope that President Trump will be sworn in in January 20.
Thank you for your steady guidance in 2020.

Judi Raber on 12/28/2020 5:40:09 PM
My wife bought me a copy of unstoppable Prosperity as a Christmas present. Looking forward to reading. Thanks Charles.

Lorin K on 12/29/2020 10:19:30 AM
Have been reading you for years, finally got your book.
Stay well, Stay safe
Happy healthy New Year,
Judy, Allan & Max, (the dog).

Allan Fleisher on 12/29/2020 11:15:54 AM
Due to COVID and working from home since March, I started watching your show and others on Fox Business daily. As someone who came from Taiwan at age 14 in mid 70s without speaking the language, with hard work (not a hand out) and perseverance, I like many, achieved the American dream and believe this is the greatest country in the world. I have always been a saver and an investor. I have learned a great deal since watching your shows. I greatly appreciate your stand on conservatism and capitalism. I appreciate the many guests you bring on your shows with many diverse backgrounds. I especially appreciate your patriotism and your stand for the truth. Thank you! I wish you & your family a very Happy New Year!

Sophia S. on 12/30/2020 5:00:55 PM
 

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