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Afternoon Note

Unity and Hope

By Charles Payne, CEO & Principal Analyst
1/20/2021 1:35 PM

It was a short inauguration speech, which is fine with me.  The overarching theme of unity and hope should be benchmarks we can use and remind the new administration of when policies or actions don’t jibe.   The litany of executive orders will not help, but the real first test will be the next spending plan.

Will it be crafted in a way that invites bipartisan approval or will it be rammed through using budget reconciliation?

I hope that is the case, and I would love to see President Biden derail impeachment efforts, which are being used by the media to continue attacking folks that were not involved in the Capitol riots. 

Now to the market.

Another great session with Financials the only laggard, which is intriguing in the sense big banks were supposed to lead the market higher early in the earnings season.

Instead, its Communication Services led by Netflix (NFLX) and Technology led by juggernauts Microsoft (MSFT) and Apple (AAPL).

S&P 500 Index

+1.31%

 

Communication Services XLC

+3.08%

 

Consumer Discretionary XLY

+1.76%

 

Consumer Staples XLP

+0.02%

 

Energy XLE

+0.07%

 

Financials XLF

 

-0.52%

Health Care XLV

+0.48%

 

Industrials XLI

+0.45%

 

Materials XLB

+0.13%

 

Real Estate XLRE

+2.19%

 

Technology XLK

+2.01%

 

Utilities XLU

+0.65%

 

 


Comments
Charles,

Wrote a friend a response email after he sent me a SunGaurd forecast for market. What i read was same old linear projecton of the current by Wall Street marketers.

I was struck that a long term forecast had no list of big risks / black swan events

-China relations
- China threat or actual invasion of Taiwan
- Morphing of virus to something not covered by vacines
- Fed printing of gazzilions of dollars
- Likely oil prices will double.. gas price double by end of summer based on the "Green" silly season and control of legistlators with "law based engineering degrees" rewriting the laws of physics and thermodynamics (they think)

All in seems the expected should be the unexpected and some small to massive correction ?

Until then bets on oil rising, commodities, Green EV plays that make no engineering sense but pushed by drones in congress, maybe some hotel, cruise ships and stocks like RYCEY (Rolls Royce engines) might have a shot

Love you to comment on broad indexes ...

jon Kirkegaard on 1/20/2021 2:12:14 PM
I think George Michael covered it well in his song, 'Praying For Time' concerning the poor and shrinking middle class. 'Hanging on to hope. When there is no hope to speak of'. This can't go on much longer.



Bob DesRochers on 1/20/2021 2:23:05 PM
So, does the unity start before or after they “Impeach” Trump?

Tommy H on 1/20/2021 2:24:27 PM
Hope and unity sounds all well good but how can unite 75 million people when you are going after them mercilessly for something they didn’t except vote against Him ? I fear the next word that will be integrity.

Sharon k g on 1/20/2021 2:53:01 PM
Hope and unity sounds all well good but how can unite 75 million people when you are going after them mercilessly for something they didn’t except vote against Him ? I fear the next word that will be integrity.

Sharon k g on 1/20/2021 2:55:16 PM
Wow Charles, you speak right to my aching heart after all the hypocrisy I hear. Thank you so much.
Diane

Diane on 1/20/2021 3:06:58 PM
 

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