Red, Blue, or Green?

Published this morning.

Despite Washington D.C. and the establishment’s dogged determination to stomp out and criminalize nationalism, populism, and any speech that supports it, the financial markets remain amazingly resilient. Buyers are piling in every time the S&P 500 index tags 3775, but they disappear at any price much above 3800. Economically sensitive sectors like energy, transportation, and small cap stocks continue to attract relative strength.

Meanwhile, the Democrat Washington D.C. Attorney General is considering arresting President Trump, Donald Trump Jr., Rudy Giuliani, and Mo Brooks for inciting a riot. Another impeachment is underway. But as indicated yesterday, the market lives for green – not red or blue. The “elephant” in the room is not Republican but is more attuned to stimulus, liquidity, normalization, and Governor Cuomo’s stunning reversal to open New York back up. The “donkey” (asses) in the room are the spiteful politicians. 

Seemingly, these politicians lack self-awareness. China Virus deaths hit another record yesterday if the statistics are valid. Small businesses and a lot of regular people need help.

It is not easy to sort through all of this, but the algorithms move closer to buy alerts as the market moves sideways. Just like me, the market is sorting through new opportunities as the dust begins to settle. And even if we reenter the markets, we have to monitor positions in light of valuations and attendant risks.

What I do like is investing in the face of consternation and fear. The recent giddiness has abated, albeit for reasons not directly related to the markets. Let’s see what the day and the rest of this week brings.

In the meantime, my unsolicited advice to the spiteful, arrogant, “morally superior” Globalists hellbent to crush the voices of ordinary people – “what you fear you create.”

A.F. Thornton