PRE MARKET NOTES

Futures down a wee bit but after yesterday, no biggie. We remain amazed how since the election, there hasn’t even been a 2% drawdown. The combination of the surprise election, a ton of cash on the sideline and the potential for tax cuts, regulatory relief and the continued monolithic easy money sloshing across the globe…has done the job.

Many are saying this market is waaaay overvalued. They are right…but overvalued can get more overvalued. We have seen it before…and if earnings can explode going forward, valuations come down.

SNAPCHAT going public today. If this was a company selling steel pipes, it would come out at 75% below the IPO value…seriously. 50x sales…not earnings…but 50x sales….massive losses and a recent slowdown in business does not thrill…but glamour is glamour and social media is glamour. Just remember one word…TWITTER. If Snapchat can pull a Facebook and accelerate their numbers in a major way, then all may be fine. We have no clue how it trades when it comes out.