Made it through Halloween and the only real scary thing I witnessed was my Red Riders getting run out of Norman imitating a real football team.
I would say that the Astros losing the first two games in Atlanta was no fun but coming back Sunday so they can come back to Houston raised my spirits.
A pathetic imitation of a football team would be the Texans, while the Boys again came to the rescue.
Much like the market, there is much to celebrate with record high levels for the averages and in dexes, but there is the specter of inflation, unemployment and slow growth.
From a trading standpoint, it is always the hope of stock prices climbing the wall of worry.
I will say of all the various topics that might concern investors, the enormous debt the nation has built up over the last couple of decades since the post 9/11 Middle East war is a force that we will have to deal with much sooner than later.
Rising interest rates will seriously compound our problem.
I don’t believe in Modern Monetary Theory that we can print money endlessly and the economy will take care of itself. No matter what party you are in, there will come a reckoning that we have to spend less and pay more in taxes.
But you cannot get elected telling constituents that you will not give them something and, rather, will take it away.
Moreover, how much favor is there is raising taxes on everyone, not just the wealthy.
These come about only when we have pushed ourselves into a dangerous economic position.
I’m noting saying we’re trapped, but the dark clouds are imminent.
As I say all this, you have nothing but great news on the earnings front.
The last couple of weeks have brought news of greater than expected earnings.
It has come at a remarkable pace of nearly 90% of the companies reporting have posted higher than forecasted earnings and positive projections.
This is hardly doom and gloom on the near horizon.
Some old traders like me seem intent on raining on the parade.
You have to give it up to those on the positive side of the ledger.
They have been right on this move to record highs
You can take Exxon for example. As negative as the fossil fuel industry has been painted, we see Exxon reporting increased earnings and raising the dividend that some questioned.
Tesla moved from an $800 a share stock to over $110 per share as they announce a deal with Hertz to sell 100,000 units to the rental car company.
Facebook couldn’t take more heat so they just changed their name and all is apparently forgotten.
I think not, but what the heck.
Janet Yellen can talk all she wants about transitory inflation, but she will have to deal with the impact that higher beer prices will bring.
If you haven’t noticed, aluminum prices are spiraling and the supply chain is limiting the amount of barley and hops sending those prices upward.
