The Closing Look
Stocks were relatively quiet on Friday as the market paused to digest its strongest weekly gain of the year. Oil prices fell 3% which dragged down a slew of energy stocks. Oil fell after people questioned the ability for OPEC to actually reach a deal and cut production. It’s perfectly normal to see the market pauses after a very strong move. The Dow erased 3 month’s of losses in the past 3.5 trading days! That’s a big feat.
Gary’s Thoughts:
“OUR THOUGHTS ON AN AMAZING WEEK!”
By Gary Kaltbaum- November 11,2016
It’s about time. It’s about time things changed. We have no clue as to the outcome of the new administration but we are willing to give them a chance just like we gave the last administration a chance. But unfortunately, with the last administration, we have had an over-regulated economy. We have had an over-taxed economy. We have had an economy drowning in red tape. We have had an economy that was always worried about what was next. We have had an economy that was awaiting the head of the Senate budget committee in Bernie Sanders and maybe a Treasury Secretary in Elizabeth Warren. We had an economy that was awaiting even higher taxes. We had an economy that was awaiting even more regulations. We had an economy in where business owners lived day to day knowing something else was going to come out of their hide. We had an economy where restaurant chains had to prepare for more mandated higher wages. We had an economy where coal country was destroyed on purpose. We had an economy where doctors spend more time on paperwork than with patients. We had an economy where small community banks were restricted from growing, where big banks had a mallet constantly banging them over the head. We had an economy where business and individual were lied to about a gargantuan blob of a healthcare bill. We had nothing more than massive government and massive uncertainty.
THAT HAS NOW ALL CHANGED. Instead of higher taxes, the economy awaits lower taxes. Instead of more regulations, the economy awaits less regulations. Instead of more uncertainty about what is next to hamper growth, there will be certainty that policy will only give growth a tailwind. Instead of business owners worried about their expense side, they can now think about their growth side. Instead of the whole business world worried about the continued sucking sound of the government’s vacuum, it now thinks about government being a partner by getting the hell out of the way.
We believe the economy has already changed for the better. Business owners have heard the message from the new administration…polar opposite of the previous administration and the polar opposite of what was to come from the next administration. We are already on the way. Just ask the market.
As far as markets, we will not say definitely because markets are fluid, but so far, markets are voting with both hands. Every sector that we have told you that were being preyed on by government, had their biggest week in ages…IN SPITE OF ALL THE DIRE WARNINGS FROM 370 CELEBRATED ECONOMISTS AND SOME MARKETS WRITERS WITH AGENDAS. Financials on the thought of the assinine Dodd Frank going by the way of the Dodo…Pharma/biotech because of freer markets, construction/industrials because of the hopeful promise that someone will actually come through on the upgrading of infrastructure and on a stronger economy…defense stocks on the rebuilding of the military…restaurants on the relief of the threat of more mandates on health care and wages…coal which speaks for itself as the effort to destroy the industry was non-stop. We still know markets have a lot to deal with but this was a good start.
We can go on but you get the point.
Lastly…a message to our best buddy Paul Krugman who in his infinite socialist wisdom, when the futures were down 900 upon the Trump victory stated markets would never come back…naaah! We’ll just end on a happy note.
Full market report over the weekend.