——The 2nd part of our equation is coming to fruition. The first part is a maniacally easier money Jay Powell who is printing more cake than Bernanke did when unemployment was 9% and in the midst of a financial meltdown. Remember, markets love QE, which is not only occurring here but around the globe. And by the way, the 10 year is back to 1.893% so Mr. Easy may have overshot but this time, the other way.———–
———–But the 2nd part is now in full bloom as we are hearing this morning something about the tariffs being not so wonderful as the talk of loosening up on the tariffs hits the news. In our last missive to you, we wrote: ” The president finally took advice from a few smart people that he had to end the China nonsense as he heads into the election year. (Expect a truce sold as the greatest deal ever!)” And truce we are getting. Rolling back tariffs is not a deal. But it helps. Buying up the same amount of ag that you used to buy is not a deal. But it helps. We shall see what is next but we will take any “good news” as ELECTIONS MATTER. The president now understands this.———
——-So as we are now in the seasonally strong November-December period, the only negative is that near-term, all our sentiment indicators are bright red bullish. This is a contrary indicator so maybe we get some pulling back. But so far, pullbacks are nominal and short-lived. We also add that it will continue to remain a narrow market but this time it is growth that is not working while value is.——–
——-Of course, all this will not help the Knicks, will not help the Giants and we shall see about the Mets but they passed up a couple of really good coaches for a new guy who all we think about are the words “struck out looking!” Die hard Mets fans will know what we are talking about.———-
——–And lastly, we have held off on our take on this whole Elizabeth Warren Marxist nightmare. (Capitalist our —!) Seems many are now getting it as she just forgot the one rule of Marxists…never tell anyone your SPECIFIC plan. But many still miss the main point and that is nothing she tries to do will affect the wealthy but everything she does try to do will stop anyone and everyone from becoming wealthy. We will have the numbers and the facts in a few days. But in a nutshell…Elizabeth Warren=SPAM. Bill Gates= chateubriand. We have nothing against SPAM. Just thought the comparison appropriate.——
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