BERNIE GOES FULL CHAVEZ/MADURO AND THE MARKET
So Bernie goes one up on Elizabeth. On his twitter feed, he writes: ” There should be no billionaires. We are going to tax their extreme wealth and invest in working people.”
He then proposes this YEARLY wealth confiscation:
1% above $32 mil
2% $50 mil-$250 mil
3% $250 mil-$500 mil
4% $500 mil-$1 bil
5% $1 bil-$2.5 bil
6% $2.5 bil-$5 bil
7% $5 bil-$10 bil
8% above $10 bil
So Bernie going full Chavez/Maduro but Bernie has not thought things out. Go figure! We have called the Sanders people asking for comment on a few questions. They refuse to answer.
Question #1…If you confiscate wealth from the billionaires out of existence, who are you going to have left to tax?
Question #2…What will you do when every billionaire leaves the U.S. to escape this confiscation?
Question #3…If everyone knows that at a certain point, every dime gets taken away from them, why would they continue to work and grow their business?
Unfortunately, an authoritarian, socialist, Marxist, economically illiterate person who would let the Boston bomber vote in our elections did not consider such logic!
THE MARKET
We are just letting you know that the growth area of the market continues to implode. You would not know this from just watching the big 4 indices. We ask you to pay very close attention to this as this type of action is very often a harbinger of not so thrilling things to come. When the growth areas go bye-bye and that money flows into the lower beta areas, it has many times been a signal of the big money running away from risk. When the market is turning defensive, it buys into defensive. This can only last so long. We now watch the all-important SEMICONDUCTORS as they are starting to roll over and then will be watching the big 4 as all are showing subtle distribution up at the highs. Just underneath here are the 50 day moving averages. They will need to hold. We shall alert you if those levels break. Keep in mind, we are writing this with the big 4 just a shade underneath their highs. It is the underneath the surface action that is giving us a lot of pause here. It is end of quarter window dressing week. Of course, window dressing is illegal so does not happen.