Another day, another Dow gain … making it 12 sessions in a row … and when this type of streak occurs (on the positive side) it is fun to find one piece of information that makes for fun water cooler talk.
So here goes: According to Bespoke, the last time the Dow rose 14 days in a row was back in 1897. Hearing this, I wondered how many people on the planet were alive at the time. The answer? Nobody! That’s right … highlighting how rarified the air we are breathing in right now is … not one single person on the planet was alive when the Dow last rose 14 straight days! That’s right … the oldest … reported by CNN … is Emma Morano of Italy at 117 years old. Just 2 more days to go and … well … let’s keep our fingers crossed … for both the Dow and for Emma.
What could keep us from reaching such a mark? Many things … including just random market movement.
But focus today could be on two things … the Fed rate rise in March (now implied by futures to be 50/50) … and tonight’s speech by President Trump before Congress.
In review of interesting stories for today a NY Daily News article caught my nervous attention (included below) as a fund manager who “famously predicted the 2009 recession” seemed to claim we may be headed for a 60% decline. So not only did I review his past “other” calls (such as a complete market collapse in 2014) but I took a look at his “Strategic Growth” mutual fund … and even with the roaring bull market we’ve experienced in the last few years … notice that this fund has a negative return every years since 2011 (when it was up just over a whopping 1%). That is definitely a feat pretty hard to accomplish! I just wish market reporters would look at the whole story before putting people on pedestals – which appear, at times, to be made up of little more than cardboard.
So tonight we look forward to details on how the administration hopes to achieve its lofty objectives …
… and, hopefully, unlike any close review of Emma Morano, mentioned before, who is the oldest person in the world … analysts and economists alike will look closely … to see if the proposals put forward tonight before Congress and the American public … have any teeth.
Have a great day.
Joseph G. Witthohn, CFA
Emerald Asset Management
610 Freedom Business Center Drive
King of Prussia, PA 19406
(610) 337-9230 ext. 6
A Quick Look at the News
February 28, 2017
Joseph G. Witthohn, CFA | email@example.com
… as of 11:22 AM today …
The GDP number released this morning continued to imply a slow, steady growth to the U.S. economy … but for the new administration (and some investors) … the rate of growth is not satisfactory at all (Bloomberg)
… but what does the market hold? One fund manager sees volatility … but, to be fair, it is always safe to forecast volatility for if you are wrong … no one really remembers (NYDailyNews)
… and those 10-percent historical market returns? Unless earning pick up by quite a bit (with dividends to follow) some feel forecasts (and hope) should be held in check (MarketWatch)
One of the things I find amazing is the relatively low productivity numbers in the face of automation. Here is one machine that replaces 360,000 hours of legal work. That’s a lot of billable hours (Bloomberg)
… but a group of retirees might soon be hiring lawyers (real ones, not machines) to look into their annual pension … for a severe cut from what was expected (or already spent) could destroy a retirement dream (NYDailyNews)
Many wonder what the future will hold in terms of rapid growth. I personally think we should keep our eyes on Virtual and Augmented Reality … as technology advancement here is seeing rapid improvement (CNET)
Hey … where are you going on vacation this year? Some beach? Some city? The countryside? How boring. Soon … very soon … you can go to the Moon (MarketWatch)
How is this for incentive to get your kids to clean their room? Simply remind them that their stay in your house might not be a temporary thing … as some are finding they will be in their parent’s home … forever (MarketWatch)
… and remember that one child policy in China? Um … the demographics don’t work anymore … for more kids are needed and many governments are finding an aging population could hurt economic growth (TheGuardian)