The old axiom of buying on the rumor and selling on the news raised its pathetic head this week with Fed Chairman Powel announcing an expected quarter-point cut in the Fed funds rate.
The problem came with his forecast for fewer rate cuts in 2025.
The various indexes and averages were hit with almost 3% losses from record high levels. Apparently the truth is much harder than fiction.
The week was saved on Friday with lower than expected inflation measures and almost half of Wednesday's loss was recovered.
It is not unimaginable that the market is overpriced.
The Mag 7 is trading at almost a 30 multiple excluding Tesla, which trades at a 130 multiple.
Musk's name brand has moved up 170 points since the election.
I will tell you that every bit of experience I have tells me to sell my shares.
I am not a greedy person, but I don't see this stock coming back to the pack.
Musk has so much going his way now that nothing short of a meteor hitting the planet and wiping us out will stop this stock over the near term.
God bless Trump, but the most important man in the room is not orange.
A significant portion of the fall in the Dow on Wednesday was due to the fall of United Healthcare.
There CEO was assassinated and all of a sudden it is not a great thing to be associated with insurance.
Just to let you know that the cornerstone of Berkshire Hathaway was in the insurance business.
I am not a fan and have canceled every bit of insurance I can and wish I had done such years ago.
It is however an unbelievable cash cow, and I hate to admit I had shares in several insurance companies.
They flat out make money and should you be looking for value in an overpriced market, United Healthcare may be there just waiting for you.
This upcoming couple of weeks should be a complete sleeper.
The shutdown of the government was avoided.
There will be little or nothing happening until the inauguration later in January.
Much like the dog days of August, this is a perfect time to forget about this market.
A great time to enjoy family and friends or in the alternative head off for an adventure.
Whatever your choice maybe, I wish you a very Merry Christmas filled with joy and celebration.
I hope your bank account can afford the bills that will be coming.
With an almost 20% gain this year, you should have nothing to worry about.
