Darn it. We were actually going to lay low until this weekend when we hit you between the eyes on markets but:
Before we even start, Mitt Romney, the Sybil of politics, went after Trump (we are no fan) in an op-ed in the Washington Post. We have one simple question for Mr. Romney. If this is how you felt, why not call the president, order some pizza, spend an hour telling him your concerns and give the president what you believe are solutions? Why add fuel to the media fire? Of course, we can now name the next week “kiss Mitt Romney’s a– week” by the media who ripped Romney to shreds when he ran for president.
FUTURES are smacked hard this morning. The blame is on continued weakening numbers out of China. 6 months ago, 5 months ago, 4 months ago, 3 months ago, 2 months ago, last month, last week…we have been telling you that foreign markets were telegraphing slowdowns. We have been telling you that all economic data and all earning’s estimates would be coming down and that the norm would be surprises would be to the downside. In other words, the markets had been yelling and screaming with a bull horn. Dallas fed, Philly fed, Richmond fed, housing, durable goods and many other numbers have missed estimates.
We are not immune. Estimates for GDP have come down from the high 3s to the low 2s. The markets are predicting lower. Estimates for earnings growth have been coming down to about 7% growth for 2019. We believe that number remains much, much too high.
The bear market in stocks and credit continues around the globe. Too many continue to bark out PAST FUNDAMENTAL NUMBERS which matter not. Too many continue to call it a correction in a bull market. Too many continue to say buy the dip. Too many continue to use the words, cheap, value, over-done, over-reaction and all that crap. We have news for you. Markets do not care a shred about opinion…the main reason why we interpret price.
We were actually in hopes of a couple more weeks of drifting higher for another big short selling opportunity but looks like that may not happen. Bearish conditions continue. The road map for a classic bear market continues to play out in classic fashion.