"Musk another example of speaking before thinking" by: John Sample

   Well, last week was special and I am not talking about SCOTUS matters. 
   The unemployment rate came in at 3.7 percent - the lowest in over 40 years. 
   You would think that’s good news, but wrong again. 
   For example, the Federal Reserve would hike interest rates to stave off an overheated economy would invert the yield curve and be the death of the bull market. 
   Makes sense right? A good economy is bad for the market. 
   If you are confused, I understand, as you must have a good economy so companies can report better earnings that support rising equities values. 
   The end result was that the market leaders and high tech were taken to the wood shed for punishment. 
   Nothing drastic however. Of interest was the fact that the large capitalized Dow Industrial Average was down, but by a much smaller percentage. 
   It noteworthy that higher interest rates will become a significant drag on equities. 
   We are at that inflection point where current interest rates reflected in the 10-year Treasury are at 3 percent and dividend yields are just below that level. 
   Investors will hang with stocks given the potential for capital gain in the stock value over and above the dividend yield. 
   As rates continue to go up - and they will go up - it will make investors question whether the risk of capital is worth holding stocks.
   That of course is the economic side of the coin. 
   You also have the constant attention to what is going on in Washington D.C., along with the looming mid-term elections in less than a month. 
   A change in the control of Congress could really make the past two years look tame. 
   I would like to counsel you on what to do in the meantime, but that is far beyond my abilities at short-term trading. 
   I have been building cash as I have my sights set on certain NASDAQ stocks that I missed on the last wave upward. 
   I will probably sell into the end of this year and the beginning of next year. 
   I believe that when those who made significant gains in the FANG stocks start heading for the door, it will be a stampede and many will get hurt.
   I noticed this week that the importance of CEOs was front and center. 
   Mr. Musk was able to step back and get a settlement with the SEC but could hardly contain himself. The ink is not on the paper for a judge to approve the settlement and the smartest guy in the room starts taking shots at the SEC. 
   Is this guy somehow related to the President? 
   I don’t Tweet, but daily attempts to prove your intellect seems like a solution for failure. 
   My Dad always told me that I would be perceived much smarter with my mouth shut, rather than proving the opposite by talking.
   On the positive side of the ledger, GE replaced its CEO and, in just a week, the stock has climbed almost 20 percent.
   Realize that nothing has changed and there are still problems. It just shows you what a change in perception can do. 
   It didn’t hurt that a major investment firm raised its opinion of the company’s fortunes. 
   Never forget though that this company was at nearly 20 to start the year and was last week at 11.

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