Weekend Wrap: Booming Economy, Gradual Inflation Boosts US Stocks

While the NASDAQ and S&P set multiple intra-day and closing records, the Dow continued its slow progress toward the January 26, all-time closing high of 26,616.71.

Once more, the NASDAQ led all indices in percentage terms, chalking up a two percent gain for the final week in August. The Dow finished up August with a second consecutive monthly gain (+557.29), though it was less than half of July's rise (+1143.78).

Despite two straight losing sessions, the Dow stands just 650 points away from the record.

The strategy being forwarded by the Trump administration has great appeal on Wall Street, as the summer saw many positive gains across all sectors despite efforts by the media to ignore or downplay the president's accomplishments Pointing up potential drawbacks from proposed and enacted tariffs on imports and negotiated trade deals with Mexico and Canada, the left-leaning TV and big-city newspaper media continue a vain attempt to discredit the election of Trump in 2016 via ongoing harassment by the fake Mueller investigation and countless talking heads from former administrations taking every opportunity to trash-talk the current occupant of the White House.

Thus, while the media and proponents of the left side of the political aisle promulgate a false narrative, Donald Trump and his team are actually moving forward on bold economic plans, rescuing America from over a decade of stagnation and building for a better future.

Official and unofficial sources confirm that the two-pronged assault via media and political character assassination are being called into question by US citizens. Seeing bigger paychecks, job openings everywhere and a dramatic decline in Washington war-mongering, the general public simply is not buying with the media, Democrats, and political shills are selling.

With the three-day Labor Day weekend marking an unofficial close to summer, many professional traders will be getting back to serious work approaching the next FOMC meeting (September 25-26). It's accepted that the policy meeting will produce another 25 basis point increase in the target federal funds rate, boosting it to 2.00-2.25%. The effective rate as of July was 1.91%. There is s normal lag between the target and effective rate of a few days or weeks on the lower end. Currently, the effective rate has been rising between the 1.75% and 2.00% target rate set in June.

Two big items on the Fed radar are inflation and the dollar. Having targeted two percent inflation as desirable, official data shows a slow but steady rise, approaching or even exceeding the goal. The strong dollar, however, is acting as a counterweight not only to inflation but to tariffs, the rising dollar able to purchase more foreign goods for the same amount of money.

The strong dollar, rising interest rates, and positive data on the US economy (4.2% GDP growth in the second quarter) offer the additional benefit of making the US the best place to invest, either in equities (growth) or fixed income (stability).

With one month remaining in the third quarter, the US economy engine seems to be operating on all cylinders. Any slowdown, even as predicted by a potential inverted yield curve, is still expected to be at least six months to over a year away. With that kind of time horizon, there's little concern on Wall Street over even the most expensive stocks, such as the FAANGs (Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Google (GOOG) (Alphabet)), which continue to guide the NASDAQ to new highs.

Such strong speculative conditions should persist past the FOMC meeting into the fourth quarter. More than a few analysts had predicted a weaker second half of 2018, though those forecasts are likely to be tossed upon the scrapheap of financial history.

Donald Trump's "Make America Great Again" jingo is sounding like sweet music to the ears of investors, a condition unlikely to change any time soon.

Dow Jones Industrial Average August Scorecard:

Date	Close	Gain/Loss	Cum. G/L
8/1/18	25,333.82	-81.37	-81.37
8/2/18	25,326.16	-7.66	-89.03
8/3/18	25,462.58	+136.42	+55.05
8/6/18	25,502.18	+39.60	+94.65
8/7/18	25,628.91	+126.73	+221.38
8/8/18	25,583.75	-45.16	+176.22
8/9/18	25,509.23	-74.52	+101.70
8/10/18	25,313.14	-196.09	-94.39
8/13/18	25,187.70	-125.44	-219.83
8/14/18	25,299.92	+112.22	-107.61
8/15/18	25,162.41	-137.51	-245.12
8/16/18	25,558.73	+396.32	+151.20
8/17/18	25,669.32	+110.59	+261.79
8/20/18	25,758.69	+89.37	+351.16
8/21/18	25,822.29	+63.60	+414.76
8/22/18	25,733.60	-88.69	+326.07
8/23/18	25,656.98	-76.62	+249.45
8/24/18	25,790.35	+133.37	+382.82
8/27/18	26,049.64	+259.29	+642.11
8/28/18	26,064.02	+14.38	+656.49
8/29/18	26,124.57	+60.55	+717.04
8/30/18	25,986.92	-137.65	+579.39
8/31/18	25,964.82	-22.10	+557.29

At the Close, Friday, August 31, 2018:
Dow Jones Industrial Average: 25,964.82, -22.10 (-0.09%)
NASDAQ: 8,109.537, +21.174 (+0.26%)
S&P 500: 2,901.52, +0.39 (+0.01%)
NYSE Composite: 13,016.89, -23.04 (-0.18%)


For the Week:
Dow: +174.47 (+0.68%)
NASDAQ: +163.56 (2.06%)
S&P 500: +26.83 (+0.93%)
NYSE Composite: +17.45 (+0.13%)

Stocks Close Week Trending Lower; Trouble Brewing

After Thursday's all-around rout, traders entered Friday's session with apprehension and doubt, pondering whether the recovery facade had finally been broken, exposing the wickedly overpriced nature of global equites, and especially US stocks.

After a sluggish start to trading, stocks eventually turned positive midday, but failed to keep an even keel as the major indices fell in unison for the second consecutive day, ending the week on an ominous note.

While Friday's losses were nothing compared to those from the day prior, they were, nevertheless, a continuation of the downdraft since last week's North Korea scare sent stocks well below their prior highs and, in the case of the S&P 500 and NASDAQ, below their 50-day moving averages.

In addition to the uniformity of the declines, stocks spent their second straight week on the downside for only the fourth time since the election of Donald Trump as president.

The Dow Jones Industrial Average, which had been the leader in the gains for the year, finished just above its 50-dma, the signs of slowing clearly evident.

With earnings reports from the second quarter winding down, analysts and traders will be focused on economic data, which has been - for years - less than stellar. Also of concern is the Federal Reserve's stance on tightening credit and unwinding their massive balance sheet, at the same time congress and the president will be engaging in budget and debt ceiling wrangling, making for a September to remember.

Still not an absolute trend - stocks are generally down only 2-3% the past two weeks - there will eventually come a time when the long bull run since March, 2009 will come to an end, and it figures not be be pretty. Anyone with short-term views will be taken aback at any sign of decay in the financial system, though, for those old enough and wizened enough to understand past history and general economics, a general pullback will be nothing more than the ordinariness of the business cycle, this one interrupted by the machinations and experimental policies of the global central bank cartel, led the the Fed, the ECB, the Bank of Japan (BOJ), and the People's Bank of China (PBOC), which together have stuffed more than $16 trillion onto their collective balance sheets.

Unwinding this massive spending spree without collateral damage will be a monumental task, even for those empowered to oversee the world's financial order.

Fireworks are coming. Stock up on adult beverages and snacks.

At the Close, Friday, August 18, 2017:
Dow: 21,674.51, -76.22 (-0.35%)
NASDAQ: 6,216.53, -5.39 (-0.09%)
S&P 500 2,425.55, -4.46 (-0.18%)
NYSE Composite: 11,699.83, -12.88 (-0.11%)

For the Week:
Dow: -183.81 (-0.84%)
NASDAQ: -40.03 (-0.64%)
S&P 500: -15.77 (-0.65%)
NYSE Composite: -63.38 (-0.54%)

Major Indices Lower To Start Week As FOMC Decision Looms

As investors weighed the risks of a March increase in the federal funds rate, all major averages slipped to open the week on Wall Street.

Members of the Federal Reserve's Open Market Committee (FOMC) have been widely suggestive that they would approve a 0.25% increase in the federal funds rate when they meet next Tuesday and Wednesday, March 14 and 15.

Thus, with money tightening, investors are squaring up positions or exiting the market in search of opportunity, primarily ending up in cash or bonds. Wall Street has rallied strongly since the election of Donald Trump as president back in November, but it appears the Fed is about to empty the punch bowl of nearly-free funding for speculators.

At The Close, 3.6.17:
Dow: 20,954.34, -51.37 (-0.24%)
NASDAQ: 5,849.18, -21.58 (-0.37%)
S&P 500: 2,375.31, -7.81 (-0.33%)
NYSE Composite: 11,547.79, -50.58 (-0.44%)

Weekend Recap: Wild Wall Street Ride Continues Push Higher

Amid the swirling winds of Washington's political circus, the nation's financial sector continued to take all the body blows, low blows, and talking head shots dished out by the deep state in perfect stride, carrying the averages to new highs on Wednesday following President Trump's speech before a joint assembly of congress.

With one eye on the political process and the other on the Federal Reserve, stocks continued to dance forward into March, with two key dates upcoming: Friday, March 10, when the February non-farm payroll report is released, and, Wednesday, March 15, the conclusion of a two-day FOMC meeting largely expected to result in an increase in the federal funds rate, from 0.50-0.75 to 0.75 to 1.00.

The jobs report will be crucial in terms of setting the agenda for the Fed governors. If expectations are met and job growth continues to be robust, the Fed will almost certainly announce a rate hike. Falling short of expectations could lead to another month of inaction on interest rates.

In any case, stocks were pumped after the presidential address in which Mr. Trump reiterated promises to build a wall on the border between Mexico and the United States, repeal and replace Obamacare, and set forth an overall economic agenda that will include budget cuts to various agencies, a trillion dollar infrastructure plan and a rejiggering of the tax code.

Should the President succeed even marginally on his lofty economic goals, stock pickers may well find themselves in a condition to ignore any moves by the Fed, freeing speculators from the tired monologue that has led the market for the past eight years running and continue the now third-longest expansion in stock market history.

Shrugging off such ancient notions as fundamental valuations and price-earnings ratios, investors have taken the stock markets literally to uncharted territories. The US dollar remains the currency of choice in most of the world and with that oil and most commodity prices have slumped and/or stabilized. Bonds continue to vacillate, though short term rates are beginning to show signs of stress, especially in consideration of upcoming budget and debt ceiling debates. Also on the minds of many in the investing community are elections in the Netherlands (in two weeks) and France (April 23) where populist candidates in the Donald Trump style are engaged in hotly contested races.

The populist surge sweeping the globe is unlikely to be quelled soon, either by technocrats in the European Union or entrenched politicians across a wide swath of nations, from Malaysia to Japan to Italy and Germany. The middle class in developed nations, having been squeezed financially by globalization, is in nearly full revolt. All the while, giant corporations appear confident that they will weather the ongoing stormy crises.

At the Close, 3.3.17:
Dow: 21,005.71, +2.74 (0.01%)
NASDAQ: 5,870.75, +9.53 (0.16%)
S&P 500: 2,383.12, +1.20 (0.05%)
NYSE Composite: 11,598.37, +22.46 (0.19%)

Since the election in early November, the NYSE Comp. and S&P 500 have closed higher 12 of 17 weeks, the Dow and NASDAQ, 13 of 17.

For the week ending 3.3.17:
Dow: +183.95 (0.88%)
NASDAQ: +25.45 (0.44%)
S&P 500: +15.78 (0.67%)
NYSE Composite: +57.08 (0.49%)

Globalism Is Dead And Dying At Davos

As the world prepares for a new American era to begin with the inauguration of Donald J. Trump as the 45th president of the United States, the global elites are gathered at Davos to interpret the condition of the world economy.

Ian Goldin, a professor of globalization and development at Oxford University spoke briefly at the World Economic Forum in Davos, Switzerland, saying,

“You can’t stop managing an entangled environment by disconnecting. This is the fundamental mistake of Brexit, of Trump, and of so many others. We are not simply connected. We are entangled. Our lives, our destinies are intertwined. What happens in China, what happens in Indonesia, what happens in India, what happens across Europe, and what happens in North America, across Africa and Latin America will affect all of us in dramatic new ways. The idea that somehow we can forge our future in an insular way, even for the biggest countries like the U.S., is a fantasy.”

Obviously, Mr. Goldin has been smoking too much of what he's been growing over the past couple of decades. To put it into a more precise perspective, Mr. Goldin kneels at the altar of globalization, thus, he's unprepared to express or even admit that there's any other opinion or world view than the one he personally promotes.

If one were living in a rural area in America, or India, or the Congo, even, the effects of global initiatives like those espoused and implemented by the people at Davos would be minimal, at best. One would still water plants, feed livestock, wash eggs, and perform all the other chores of a minimal farming/subsistence lifestyle. Mr. Goldin, being of the elitist character, has virtually no concept of digging holes for posts, erecting fences, germinating seed, slaughtering hogs, gathering chicken eggs daily, and so on. He's about as disconnected from the reality of everyday life as one could possibly be, viewing the world from his ivory tower at Oxford as he glances up briefly from his reading of some other obviously clueless professor emeritus or other "authority" whose mantra to which he subscribes.

Therefore, as we've seen in the Brexit movement and the election of Donald Trump as the next president of the United States of America, the globalist agenda is dead in the water, disconnected and disintegrating. The annual fete at Davos - through the media filter, at least - gives everyone an opportunity to see firsthand just how audaciously and vigorously the gathered elitists continue to promote their agendas. Liberalism, diversity, and globalism are all joined together into a kind of religion of the rich and powerful, but, the masses need not adhere to what is looking increasingly like failed policy.

If globalism has taken thirty or forty years to expand itself into monstrosities such as the European Union, the Arab Spring, and unadulterated acceptance of gay marriage, it's likely going to take an equal amount of time to dismantle its various parts and replace them with more stable value systems. As the globalists retreat from their worn-out traditions and values, popular uprisings will accelerate the decline. It starts, as do all major moral or political or economic upheavals, on the fringes of society, in the hinterlands, so to speak, before spreading to all ranges of the spectrum, from old to young, from the countryside to the cityscape.

We are at the beginning of a new age, one which promises the demise of authority at all levels from local to supranational and more freedom for the working classes and ordinary citizens.

On cue, one day before the actual inauguration of the man all the "experts" said had no chance of winning, Donald Trump, world markets continued a dizzy dance of denial and suspense, especially the Dow Jones Industrial Average, which spasmodically descended today to a point below where it began the year, closing at its lowest level since Decemeber 30 of last year (19,732.40, -72.32 (-0.37%)).

Though the drop in percentage terms was hardly sensational, the level is of more immediate concern. Since December 12, the intraday level never fell below 19,718, the mark made on the final day of trading for 2016, December 30.

While broader indices, the S&P 500 and the NASDAQ, retained a positive tilt for 2017, it has been the Dow that garnered the most attention of late, especially over its historic (failed) attempt to crack the 20,000 level.

With Trump taking the oath of office at noon tomorrow, the question on every trader's mind is how the markets will respond. With a whimper or a yawn, or might the Dow set aim again for an historic close?

At The Close 1.19.16:
Dow 19,732.40, -72.32 (-0.37%)
NASDAQ: 5,540.08, -15.57 (-0.28%)
S&P 500: 2,263.69, -8.20 (-0.36%)
NYSE Composite: 11,151.69, -44.41 (-0.40%)

Risk On - Risk Off Roller Coaster Is Expected In The Age Of Trump

Get used to volatility in the age of Trump.

Markets - especially stocks and bonds - are more than likely to correct and enter bear territory during Trump's administration. The bond bubble has been extended beyond its "use by" date and the stock rally since 2009 has been nothing short of miraculous, if one considers the creation of 11 trillion dollars (probably more) out of thin air to be the stuff of miracles.

Stocks and bonds are both overvalued, thus, we should experience a 10-year note at 3.0% or higher at some point in the near future, and stocks reversing course due to the competition and relative safety of bonds. Trump's policies are likely to exacerbate the condition of extreme overvaluation which will manifest itself in wild swings. He'll certainly get much needed help from the Fed, whose stated aim is to impose a regime of never-ending inflation.

Problem is, there are major distortions in the US and global economy, mostly the overhang from doing nothing to fix the issues of 2008 (actual bank failures). Let's see interest rates rise, stocks fall and somehow, inflation? A dubious argument at best.

Deflation is the friend of the frugal and that's what's coming. With less capital to blow on hookers and blow, the thrift-loving Americans in the heartland (forget the cesspool cities, they're toast) will benefit from all manner of liquidations and fire sales. It's a transfer of wealth from rich to poor and urban to rural that is long overdue. Most of the debt is tied to cities, not arable land and/or hunting/wilderness/undeveloped/underdeveloped properties.

One can get a unique impression from living in one of America's poorer areas, such as rural upstate New York, but you know what? Some people are thriving, those being land owners, farmers, growers, people with roadside stands, trade specialties, mechanical abilities and low overhead. It's pretty basic stuff, but large swaths of rural America are going to be very affordable and desirable. The cites, not so much. Pain for some, gain for others. The survivalist mentality had it right all along and will be proven winners in coming months and years.

As for today, two days before Mr. Trump assumes the office of president, markets were roiled again, lurching from one idea to another, up, then down, then sideways. European stocks were higher, WTI crude oil got smashed early but rebounded. Gold was flat, then lower; silver, always the outlier, hit its best level in a month, ended the day in New York down on the session, and has been trending higher into the inauguration, but options and futures settlements are closing fast (26th and 27th of January).

Mostly, stocks tread water and didn't offer much in the way of direction though by now, unless reading charts is grossly overrated, it's apparent that the Trump rally has run its course and Dow 20,000 is a fleeting memory.

At The Close 1.18.16:
Dow: 19,804.72, -22.05 (-0.11%)
NASDAQ: 5,555.65, +16.93 (0.31%)
S&P 500: 2,271.89, +4.00 (0.18%)
NYSE Composite: 11,196.11, -0.18 (-0.00%)

Donald Trump Moves Markets; Hugo Salinas Price Details Decline In International Reserves

It was back to work on Tuesday for US speculators, and the mood was gloomy as president-elect Donald Trump quipped that the "dollar is too strong," which sent world markets into a wild frenzy.

Asian and European markets had already been upset on Monday, while the US rested for the Martin Luther King Jr. holiday, but on Trump's vocalizing of displeasure, US markets took it to heart.

The Dow Jones Industrial Average backed away from the formerly-attainable 20,000 mark, down 110 points on Monday before a late rally slashed the losses in half.

It is apparent that the euphoria over Trump has faded significantly and American investors are heading for safer shores, mostly in bonds and cash, though precious metals may have even more appeal with gold and silver both making new highs for the year on significant gains. Spot silver stood at 17.175 and gold at 1216.70 at the close of trading in New York, but the rally may be just beginning to heat up.

Hugo Salinas Price makes important notice of the abrupt decline in international reserves. Of all the reports on matters economic, his may be the most acute and insightful. It's a must read and should be given careful consideration due to Mr. Price's status among economic thinkers.

At the Close 1.17.16:
Dow: 19,826.77, -58.96 (-0.30%)
NASDAQ: 5,538.73, -35.39 (-0.63%)
S&P 500: 2,267.89, -6.75 (-0.30%)
NYSE Composite: 11,190.76, -36.41 (-0.32%)

NASDAQ Posts Seventh Record Of 2017; Dow Flat; Gold Outperforming All Other Assets

As America lurches toward inauguration day (Jan. 20), stocks remain a mixed bag.

The Dow ended the week with a small loss on Friday as the NASDAQ rose to another record close, its seventh this year.

For the week, the NAZ was up nearly one percent. The Dow's loss was minor, at less than one half percent (-0.39%), but the broader S&P and NYSE composite suffered almost no depreciation.

Overall, it was fairly uneventful in markets, which is odd, given the cross-currents blowing through the political and economic spectrum.

Next week, with the inauguration of Donald J. Trump as America's 45th president putting a final glow on the proceedings, promises to be a more volatile period, shortened by one day, as markets are idle for Monday's Martin Luther King holiday.

Ominously, the Dow Jones Industrial Average remains positioned below the expected 20,000 level but has been flat as a pancake for the past four weeks.

WTI crude oil remains mired in the mid-fifties, while gold, the year's best-performing asset thus far, pierced the 1200/oz. mark on Friday but fell off and closed at 1196.90 the ounce.

At The Close 1.13.16:
Dow: 19,885.73, -5.27 (-0.03%)
NASDAQ: 5,574.12, +26.63 (0.48%)
S&P 500: 2,274.64, +4.20 (0.18%)
NYSE Composite: 11,227.17, +23.02 (0.21%)

Week Ending 1.13.16:
Dow: -78.07 (-0.39%)
NASDAQ: +53.06 (0.96%)
S&P 500: -2.34 (-0.10%)
NYSE Composite: -10.45 (-0.09%)

Stocks Slump, Regain Ground In Anxious Session

Yesterday, it was big pharma that took a hit after Donald Trump singled them out in his press conference, saying that the US government would begin bidding lower prices for many prescription drugs.

Today, health care insurance companies took the hit - if only briefly - as the senate pushed forward a bill to repeal the Affordable Care Act (ACA), otherwise known as Obamacare. Aetna, Anthem, Cigna and United Health were among a handful of companies that felt some shock at the open.

The Senate voted 51-48 on a measure to repeal the current president's signature health initiative. The measure now will move to the house where its passage is all but assured, with the membership heavily weighted with Republicans.

As for the rest of the market, stocks went red at the open and trimmed early losses after 11:00 am ET. The Dow was down more than 180 points in the early going, but manage to recover almost two thirds of the losses as the session dragged forward.

Missing from the narrative today was the chorus of "Dow 20000," as the industrial index extended its failed attempt at the historic milestone for the 22nd straight session.

Maybe tomorrow...

At The Close 1.12.16:
Dow: 19,891.00, -63.28 (-0.32%)
NASDAQ: 5,547.49, -16.16 (-0.29%)
S&P 500: 2,270.44, -4.88 (-0.21%)
NYSE Composite: 11,204.15, -22.63 (-0.20%)

Trump Presser A Non-Event; America Awaits Inauguration

Though widely-anticipated as a market moving event, President-Elect Donald J. Trump's press conference at 11;00 ET today was more or less an exercise in sell the hype, buy the news.

Trump handled questions about the "fake news" Russian dossiers widely circulated by CNN and other outlets and quickly dismissed them as nonsense. The audacious level of mendacity displayed by the mainstream media in the run-up to the inauguration of America's 45th president has been unconscionable and unprecedented, but the Donald managed to deflect any potential harm as the media and intelligence community reports have been devoid of facts or proof of their veracity.

Other than waving off and refusing to take questions from anybody from CNN, Trump laid out basically the same nebulous outlines upon which he campaigned, without getting too specific. Thus, what the market wanted was not what they received, but traders were assuaged by the one-hour appearance and resumed trading within the prevailing range of the past month, between 19,800 and 19,999.

If the market seems moribund, it's likely the result of non-specifics from the soon-to-be-sitting president, meaning this regime of up-down-up-down may persist through the next week, culminating in next Friday's inauguration.

Otherwise, it was another uneventful day, with the Dow still planted just south of 20K.

At the Close 1.11.16
Dow: 19,954.28, +98.75 (0.50%)
NASDAQ: 5,563.65, +11.83 (0.21%)
S&P 500: 2,275.32, +6.42 (0.28%)
NYSE Composite: 11,221.92, +38.59 (0.35%)

Nine Days And Counting: Dow Fails To Surpass 20,000; Luck Matters

Nine trading days have come and gone since the Dow surpassed the 19,900 mark with expectations that Dow 20,000 would soon be a number we'd be looking at in collected rear view mirrors. It was also the day before the FOMC of the Fed issued their well-telegraphed, monumental 25 basis point increase to the federal funds rate (AKA, the Go F Yourself rate for savers), a marketing stroke of genius by the self-appointed rulers of all marketplaces, everywhere, forever.

Well, what happened?

In technical terms, the Fed put the kibosh on stocks. 20,000 didn't happen, just like other sure things this year, such as Hillary Clinton winning the election to become America's 45th president (love that one, just can't give it up).

Other things didn't happen over the past nine trading days (plus one weekend) that were not nearly as important. Donald Trump didn't resign before taking the oath of office (sorry to the serially constipated never-Trumpers like Bill Kristol), nobody killed any special lions or panda bears, and no enormous meteors struck the earth ending the human species (really happy about that last one).

But, a few days ago (Wednesday, Dec. 21), Fearless Rick made possibly the most outrageous prediction of his inglorious career as writer, journalist, blogger and general miscreant. He touted his belief that the Dow would not break the 20,000 mark this year or at least until June, 2017. He mused that the Dow "may" not hit 20,000 until 2023.

Here's his exact quote:

The Dow isn't going to make it to 20,000 this year, and it won't make it by June of next year. In fact, it may not hit 20,000 until 2023. Book it.

So far he's right. But there's still five trading days left in 2016, so plenty of people are rooting against him, including some fat guy in a weird red suit promising some absurd thing known as a Santa Claus Rally. Good luck with that. Far fewer are betting against him, however, as the market in general, and the Dow in particular, seems to have peaked.

There's still plenty of time for him to be wrong. There's the six months until June, and the seven years until 2023. But, since one and seven are Fearless Rick's lucky numbers, he may eventually to be more lucky than good.

We shall see. In case one missed all the non-action of Friday's market churning, it went something like this: Down, slightly, sleepwalking though midday, rabid short-covering into the closing last ten minutes, boosting all the major indices into positive territory. We have all seen this play before. Yawn, and Merry Christmas.

At the Close, Friday, December 23, 2016:
Dow: 19,933.81, +14.93 (0.07%)
NASDAQ: 5,462.69, +15.27 (0.28%)
S&P 500: 2,263.79, +2.83 (0.13%)
NYSE Composite: 11,128.80, +14.66 (0.13%)

For the week:
Dow: +90.40 (+0.46%)
NASDAQ: +25.53 (+0.47%)
S&P 500: +5.72 (+0.25%)
NYSE Composite: +3.58 (+0.03%)

Dow Misses Another Opportunity To Surpass 20,000; Rally May Not Have Legs

Now that the flirtation with 20,000 on the Dow is waning, perhaps the market and its participants will return to some semblance of regular trading as opposed to the mad year-end dash for cash following the election.

While financial pundits are still calling the recent burst higher the "Trump Rally," it probably has little or no relevance to the election of the real estate magnate as the 45th president of the United States. What it has to do with is window dressing for fund managers, loading up on hot stocks to adorn their year-end portfolio prospectuses.

Less realistic is the opportunity for the rally to continue, especially after the major league run-up and two straight days of losses on the main indices. Though not large, today's declines were in a very slight range, but interestingly, stocks fell behind the unchanged line at the open and stayed there throughout the session, indicative of a tired market, though perhaps Friday will provide some news and another boost for the Dow 20,000 hat crowd.

Even that possibility seems remote, as the quad witching expiry was last week and the closeout to this week will be more reminiscent of a dash out the door than a frenzied trading day. It is, after all, just one day prior to Christmas Eve, and, despite rumors to the contrary, even Wall Street traders are human.

There's also scant data coming forward and just about everything but kitchen sink futures have been priced in for the final week of 2016. Anybody seeking profits at this juncture has truly missed that boat.

So, Friday is going to be dull and the cries of "Dow 20,000" are not to be heard around these parts for a while. Taking a little off the top going into the new year isn't exactly a bad idea, and it seems to be catching on with more than a few.

There still is time for the annual Santa Claus rally, traditionally the final week of the year, but the Trump rally may have grounded old St. Nick. We'll find out next week.

At the Close 12/22/16:
Dow: 19,918.88, -23.08 (-0.12%)
NASDAQ: 5,447.42, -24.01 (-0.44%)
S&P 500: 2,260.96, -4.22 (-0.19%)
NYSE Composite: 11,113.04, -29.52 (-0.26%)

As 2016 Winds Down With Stocks Up, What's In Store For 2017?

Recently, Americans and observes worldwide have been subjected to overreaction by lawmakers and media types over the "Russian hacking" of the recently-resolved US presidential elections and the possibility that certain electors in the electoral collage would bolt from the Trump camp in enough numbers to deny Donald Trump the needed 270 votes to certify him as America's 45th president.

As of 4:30 pm ET Monday, the electoral college did its job, giving Trump 306 votes, confirming his November victory and assuring the American public that all politics would proceed normally (we believe) for the foreseeable future.

Additionally, the over-hyped media and intelligence frenzy was revealed to have been yet another case of sour grapes and/or fake news fomented by the losers in the Democrat party and what appears to be rogue elements of the intelligence community. The good news is that Mr. Trump, once inaugurated on January 20, will be able to remove such rogue elements via his appointees to the CIA, FBI and other agencies. The bad news is that the sore loser Democrats and their media whores will remain, and they will likely continue to harass and object every effort Trump makes to "make America great again."

While almost nobody can reasonably oppose efforts to improve conditions for Americans, the Democrats will couch their objections in the most mealy-mouthed manners, with references to diversity, unfairness and vague commentaries on power and elitism.

Fortunately, the investor class has ignored most of the political squabbling and has moved on to increasing its wealth, with stocks up tremendously since election day. The bond markets have expressed acceptance of the Fed's minuscule rate hike of last week and have stabilized. Everything seems in place for a nice, year-end Santa Claus rally which will take the Dow Jones Industrial Average over the mythical 20,000 plateau.

The question to be asked at this juncture is, will the markets remain ebullient and bubbly into the New Year? With stocks hovering at or near all-time highs, and the bull run which began in 2009 extending into a ninth year, the answer should be obvious. Markets do not work one way (up) and corrections and bear markets often occur at what seems to be the most inopportune moments. With investor sentiment bullish to the extreme, the probability of a major correction in the first quarter of 2017 should be quite high, unless one adheres to the well-founded theory that the Fed has backstopped equity markets for years and will continue to do so. Doing otherwise, so the conventional wisdom tells, would be catastrophic, as though fair and open markets are inherently evil.

They are not, and it may be nigh on the eve of major changes in fiscal and monetary policy. On the fiscal side, Mr. Trump - a businessman with many years experience in all matters financial - the message is clear: he will do what it takes to get America on a path to prosperity for all levels of income, not just the crony capitalists and heavily financialized major corporations, but for individuals up and down the income ladder.

As for the Fed, one's guess is as good as another, but the genii inside the Fed seem intent on raising interest rates gradually in order to keep the US economy from overheating. As usual, they will be late to the party, but perhaps they can salve their damaged egos by reducing their bloated balance sheet in 2017 and leaving the number of interest rate hikes below three, ending the year around one percent, which, while traditionally absurdly low, would count as a major accomplishment since the Great Financial Crisis of the recent past.

Geopolitical events may overtake the Fed's view, however, as Japan and the Eurozone are well upon the road to financial ruin, and a crisis in either market (plus China) may cause extreme disruption to an orderly return to what is commonly referred to as "normalization."

A new administration hell-bent on returning America to greatness and leveling the playing field in international trade set against a backdrop of unelected financial and political operatives worldwide should make for an interesting, exciting, volatile year ahead.

As 2016 winds down, 2017 should present unique and various opportunities in all markets, requiring astute evaluation of not just balance sheets and P/E ratios, but insight into the political influence which has been and will continue to be exerted upon trade and commerce, globally.

At the Close: 12/19/2016
Dow: 19,883.06, +39.65 (0.20%)
NASDAQ: 5,457.44, +20.28 (0.37%)
S&P 500: 2,262.53, +4.46 (0.20%)
NYSE Composite: 11,128.54, +3.32 (0.03%)

Pre-FOMC Forecast: Stocks Steady, Sell Bonds, Buy Silver And Gold

There's an interesting set-up to today's expected FOMC 25 basis point (0.25%) hike in the federal funds rate.

The Yen has collapsed 19% in the last few months, the $USD is now at a 13-year high and stocks are at one of their most overbought levels in 100 years.

If that last statement about stocks being wildly overvalued doesn't give one pause, consider the situation the last time the Fed raised interest rates. It was a year ago, last December. On the day of the rate increase, December 16, the Dow Industrial Average closed at 17,749.09. The index dipped and dodged for two weeks, re-rallying back to close at 17,720.98, December 29, never quite getting back to previous highs.

But, when the new year dawned, the floodgates opened as sellers emerged from the shadows, many of them likely taking advantage of tax rules on profitable trades, mostly allowing those profits from 2015 to float tax-free until April of 2017 (the future) if sold in 2016. Tricky, allowable, rational and fully legal was this tactic which in effect dropped the Dow by a shade over 11 percent to a closing quote of 15,766.74 on January 20.

That was officially correction territory, and, while the rest of the trading community was wondering if this was going to be a 2008 redux, the Fed and its central banking brethren quietly began undermining market fundamentals (again, surprise!) by surreptitiously buying equities through proxies, particularly, the Bank of Japan, notorious for market meddling in everything from auto parts to currencies to yes, Virginia, stocks.

As it turned out, the trade was a worthwhile one for those central banking and insider trading folks. The Dow is now hurtling headlong towards 20,000, so, depending on which stocks the proxies were buying, they may have profited upwards of 25%.

Is the market rigged, or is it ready to face the awful reality of a federal funds rate at 0.50-0.75% The horror! One is amazed at not only the audacity of the central banking cartel, but also its awesome good fortune on all matters regarding their (your) money.

Getting back to the set-up from last year, the yen was down only 10% from September through December of 2015, about half of its decline this year. Can history repeat, and with even better results? That's one heck of a bet, if one is so inclined. For the rest of us, it looks like sitting on the sidelines for the rest of 2016 might turn out to be a profitable move.

It's of dubious probability that stocks are going to stage any kind of dramatic rally, so, what's the play, and when.

It's not often that Money Daily offers specific investment advice, but, taking a gander at what's happened to gold and silver the past few months (gold dropping from above $1300 to below $1160 and silver dipping from near $20 per ounce to around $17 currently), the opportunity is available to not necessarily make a killing, but to preserve some wealth in precious metals, you know, those things that have been considered money for thousands of years, gold and silver.

Being that Money Daily is more of a silver surfer than a gold bug, the recommendation is for silver at any price below $16.00. The market will not likely tolerate downside below $14.50, and the potential is there for a fabulous move upside, without the prerequisite dip.

So, here's the scenario. Stocks will remain steady or turn upwards for the remainder of December. After all, what's Christmas without a Santa Claus rally? Remember, stocks are wildly overpriced and overdue for some corrective medicine. The dollar should get a good, hard beating, but it probably won't because other major economies are in much worse shape.

It gets more complicated, because a strong dollar makes US goods more expensive overseas, and, if our newly-elected president has his way, imports are going to be heavily taxed, and soon. A trade war is likely to erupt by mid-2017.

Bond yields should benefit from rising interest rates, whereas gold and silver should see further price deterioration.

The wild cards are many, but the obvious one is inflation. If the Fed continues resolutely on course to foment inflation above two percent (impossible, say some, though the PPI came in today with a surprising gain of 0.4% for November, at the same time industrial production dipped 0.4% and capacity utilization also fell, to a six-month low of 75.0%.

While the majority of mainstream idiot economists pay scant attention to the latter two data points, CEOs and real economists take these numbers seriously. How is there going to be inflation when industrial production is slowing or stagnant and utilization is only 75% when the norm for growing economies is closer to 85%? Yet, there it is, with producer prices advancing at an annualized rate of 4.8%. Tomorrow's release of CPI for November will be the final nail in the coffin of controlled destruction economics engineered by the Fed and foreign central bank proxies.

Sorry if there's hardly anything positive in this report, but the era of central bank meddling, manipulating and needling intervention is in need of departure. They've managed to create an economy that benefits only those in the know, at the expense of taxpayers and citizens worldwide. It's like a giant plantation, with a healthy portion of worker paychecks - via taxes, fees, inflation and other theft - as the harvest.

You're being fattened and groomed for the slaughter or shearing, in a world which allows most to gain marginally but not substantially. Those without an escape hatch like a side business or secret gold vault are victims of mediocrity, though most will never notice and hardly ever complain.

So, off we go to FOMC land, with the big announcement (that's sarcasm, friend) fewer than two hours away.

Reiterating the call for silver surfing, WAIT. It's difficult with silver at such bargain levels, but it's almost sure to go lower, especialy if it goes a little higher. The central bankers - who hate competition from other forms of money - simply won't have it, and, since they have complete control over the paper silver market, they'll crush the price. If silver spikes above $19, it's a missed opportunity, but, bonus, your holdings are now worth more of those teeny-weeny Federal Reserve Notes.

The best timing may be the week between Christmas and New Year's Day, when nobody is paying much attention, or within the first three weeks of January. After the inauguration on the 20th, it's possible that markets will experience some serious turmoil, so there may be more time available to stock up on the stuff that powers solar panels and is the best electrical conductor in the universe, besides being the money of gentlemen.

“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.”

-- Norm Franz in his book Money and Wealth in the New Millennium (2001).

More after the market close.

Interest Rates Likely To Be Hiked Wednesday; For Now, Markets Don't Care

Remember how any time the Fed even hinted that they were going to raise interest rates (the fed funds rate, to be exact) the market would throw a hissy fit and drop 3-5% in a matter of days?

Well, that's ancient history, it appears, as the Dow smashes its way toward 20,000 with yet another all-time high, despite the Fed nearly certain to raise the Fed funds rate tomorrow (Wednesday, 2:00 pm).

For now, markets are completely out of control and have been since the election of one Donald J. Trump as president of the United States. If anybody believes his pledge to "make America great again," it sure seems like wizened traders on Wall Street do.

Hang tight. It's almost time to make a major move on silver and/or gold. The logic and reasoning for the buy will be explained right here at Money Daily in tomorrow's post-FOMC post.

Tuesday, Dec. 13, at the Closing Bell:
Dow: 19,911.21, +114.78 (0.58%)
NYSE Composite: 11,236.75, +59.47 (0.53%)
NASDAQ: 5,463.83, +51.29 (0.95%)
S&P 500: 2,271.72, +14.76 (0.65%)

Stocks Continue Surging Into Year-End; Fed Rate Hike Baked In, Unsubstantial

He said, "Call the doctor. I think I'm gonna crash."
"The doctor say he's comin', but you gotta pay him cash."
They went rushin' down that freeway,
messed around and got lost
They didn't care they were just dyin' to get off
--Life in the Fast Lane, Eagles, 1976

Stocks careened higher on Friday, finishing off a week that saw increased investor buying virtually across the board. It was the best week for stocks, especially on the Dow, since the week immediately following the US elections, an odd scenario for analysts and talking media heads who predicted turmoil and collapse if anybody but Hillary Clinton was elected president.

Since the election of Donald Trump, we now know that what emerges from the mouths of Wall Street psychopaths and media slaves is usually incorrect, politically driven and nine times out of ten wrong. What we still don't understand is why the same people are relied upon for their opinions, having been proven completely wrong over and over again, the best examples of this kind of nepotistic following being seen regularly on the financial networks, Bloomberg, Fox, and notoriously, CNBC, which has its own designated cheerleader, Jim Cramer.

How could all of these pundits and overpaid professionals have gotten it so wrong? Easy. The chances of stocks advancing or declining is almost always a 50/50 proposition, but, anybody reading the tea leaves from leftover elections would have known that a Republican president following a lame duck incumbent makes for a major bull market (that's made up, but it's probably true anyhow, and, in the age of "fake news" all one needs is a headline and story, right?).

Maybe people with money think Donald Trump's various positions on trade, immigration, wages, borders and culture will usher in another gilded age of American exceptionalism. For the most part, anybody with half a brain still in working order would welcome such a change. More than likely, following the initial post-election stock surge the rest of the advances have been driven largely by herd behavior.

It should be widely accepted, though it isn't, that stocks are valued extremely high, but the right thing is that bonds have been collapsing over the past five weeks, at the same time stocks have been rising. That's not your run-of-the-mill pair trade, but it is imaginative. As bonds fall, yields rise, making them more attractive as safety plays. In the meantime, with interest rates largely remaining at bargain basement levels, stocks have continued to be the investment de jour.

If there's a cloudy lining inside the silver cloud of stocks, it's that a correction is long overdue. However, bears and shorts have been saying that for the better part of the past four years and it hasn't happened. Instead, we happen to be in the midst of a massive valuation expansion. Whether or not individual stocks are good or bad investments presently does not seem to matter. There's an explosion of cash coming into the market, the same cash that was being hoarded pre-election. Once that money is exploited and exposed, the intensity of the rally should subside, but probably not until the calendar turn to 2017, the attractiveness and continual pimping of the "Santa Claus Rally" expected to be the main driver over the remaining weeks of 2016.

So, if a crash is coming, January's your huckleberry, or, right after the Fed raises the federal funds rate next week, which has evolved from a possibility to a near-certainty. The Fed and their one quarter of one percent hike in overnight lending is more a canard than a reality. Only the monumentally stupid or disconnected will suffer on a small rate increase. It's so tiny that almost nobody will notice. Certainly, it's not the kind of event that will cause a run, a panic, a rout, so the best action for next week is probably inaction.

Crashes and sudden downturns in the market normally come from out of the blue, caused by forces to which nobody (or only a select, ridiculed few) had been paying attention. If there's going to be a turn, the most likely causes are going to come from Japan or China or Europe, possibly even Brazil or another major portion of Latin America. More likely is that after Mr. Trump is inaugurated, US markets stabilize and places such as those mentioned above suffer. Such is the way of the world. There will be winners and losers. If America is going to be "great again" other countries are going to be not so great. The market is economics in motion and the chances for a crash in America are minimal over the short term. Longer term, dependent on too many factors to delineate here, corrections and crashes are bound to occur. The truth of the matter, is that the usually-wrong analysis from Wall Street is actually right on this account: if your time horizon is 20 or more years, crashes and corrections are buying opportunities and nothing more. The world won't end tomorrow or the next day, or the next month or the next year.

Thus, the outlook for stocks remains fairly solid, albeit a bit on the high side right now. Since the election, the Dow is more than 1400 points higher, a gain of nearly eight percent. That's a pretty healthy gain for five weeks and something that should be taken into account whatever investment decision one is making or about to make.

Friday's Closing Quotes:
Dow: 19,756.85, +142.04 (0.72%)
S&P 500: 2,259.53. +13.34 (0.59%)
NASDAQ: 5,444.50, +27.14 (0.50%)
NYSE Composite: 11,191.79, +41.83 (0.38%)

For the Week Ending 12/09/16:
Dow: +586.43 (+3.06%)
S&P 500: +67.58 (+3.08%)
NASDAQ: +188.85 (+3.59%)
NYSE Composite: +353.21 (+3.26%)

Is The Economy Changing? What To Buy Now

Since Donald Trump won the presidential election roughly a month ago, the reaction on Wall Street has been, in a word, enthusiastic.

The investing class is betting that Trump will have a positive impact on corporate bottom lines and all indications are that he will try to slash US corporation tax rates and repatriate corporate money from abroad to pump back into the US economy.

But, it's not at all that simple. Stocks are at record highs already, so, if you're invested in a 401k or other plan at work, sit tight. If you're one of the three dozen or so active individual investors out there still standing after years of mauling and manipulation, you have to notice that p/e ratios are at pretty high atmospheric levels.

Stocks are great if you have the patience and appetite for the ups and downs of active markets, but buying at these levels would seem a bit on the foolhardy side. There's likely to be a pullback if the business cycle still has any tethers to reality. Besides, the FOMC is going to raise interest rates, making bonds, gold and silver and other fixed investments appear more palatable.

Who knows? Banks might actually be offering 4-5% interest on savings in a few years, though it's a dubious call. A return to normalcy in markets and credit would cause the national debt to skyrocket immediately, as in "overnight," and that's not something a president Trump (or any other president for that matter) wants on his historical resume.

So, what's a bargain? As usual, the central banks and their cronies (yes, despite the Donald, there's still plenty of crony capitalism to go around. One is not going to destroy Rome in a day or even one term.) put the kibosh on the precious metals just after the election and they don't seem to be relenting at this point.

The world has changed, but it's probably too early to tell what effects those changes are going to have on businesses or investing or sectors or bonds or anything. Give it a little time, but bear in mind that the FOMC is meeting on the 13th and 14th of December and the odds are very, very good that they're going to hike the federal funds rate another 25 besis points or 0.25%, bringing the effective rate to 0.50-0.75.

Now, there's nothing special about those rates except that they're still historically low. The world is still recovering from the devastation from the crimes of 2008 that were never reconciled. It's unclear whether the Trump administration is going to get tougher on Wall Street shenanigans or allow them free reign, but either way, there's still a price ot be paid for recklessness. The trick is to know when the piper shows up and nobody is that good.

Until then, silver still looks like the bargain of the century, though leaning towards outright purchases of solar panels and the associated technology is still a viable plan.

At the bottom of it all, Americans should be investing in their own businesses. Run from home or a storefront or on a shoestring, we may be entering a time of unfettered capitalism from the ground up.

Go for it.

Closing Prices for Thursday, 12/01/16:
DOW: 19,191.93, +68.35 (0.36%)
NASDAQ: 5,251.11, -72.57 (-1.36%)
S&P 500: 2,191.08, -7.73 (-0.35%)
NYSE Composite: 10,821.85, -16.61 (-0.15%)

Media Lied, Trump Won, Markets Soared

How did the media get it so wrong?

That was outlined a month before the election, right here on Money Daily and confirmed when Donald Trump won the presidential election on November 8.

The simple truth is that the media was lying, about Clinton, about Trump, about the polls, about, well, just about everything, and the public caught onto the scam and ran the other way.

Good thing, but it's not over.

One other thing the media was widely disparaging was Trump's effect on the markets. Sorry to say, they had it all wrong again. Since election day, the S&P has gained 65 points, the Dow is up a whopping 650 points, the NASDAQ ahead by 188 points and the NYSE Composite has added 306 points.

Recall how the American public was being told by the TV media and national newspaper corps (should be corpse) that a Trump victory would leave the market in shambles and possibly send the economy spiraling into a recession.

The only thing going down the drain is the quality, reliability and honesty of news reportage in America, if that's at all possible. Prior to the election, the mainstream media had already sunk so low it was going to be difficult to get down any further into the stink-hole of bias and fear-mongering, but, by almost openly supporting Hillary Clinton, they not only demolished themselves, but their candidate with it.

The markets are doing just fine, thank you. All of the news anchors on NBC, CBS, ABC, FOX, CNN and anyone we may have missed, should be summarily fired. There's a job for which Trump is ideally suited: firing incompetent cheaters.

Short trading day Friday. See you after the holiday weekend.

--FR

At The Close, Wednesday, November 23:
Dow: 19,083.18, +59.31 (0.31%)
S&P 500: 2,204.72, +1.78 (0.08%)
NASDAQ: 5,380.68, -5.67 (-0.11%)
NYSE Composite: 10,835.90, 15.72 (0.15%)

Trump Wins, America Wins, Fearless Rick Takes A Victory Lap

November has, thus far, been an amazing month.

The Cubs won the World Series for the first time since 1904, Donald Trump won the election for president, and the Dow Jones Industrial Average registered a new all time high.

Fearless Rick outside Trump rally this Spring

In the meantime, as an aftermath to the historic, transformative election win for Donald Trump, a businessman, a TV idol, not a politician, students and other dissatisfied people are protesting the result of the democratic voting process.

To some, the protests may appear preposterous, pompous, self-indulgent, or just plain stupid. But, this is what America is all about: freedom of speech, freedom of expression, freedom to say and do whatever one pleases, so long as those words or actions don’t impinge upon those of others. It’s a thin, blurry line upon which we traverse with free speech and free assembly, but it is there, and, to a large extent, it is going to be respected.

Truthfully, the number of people protesting the election result is ridiculously small in comparison to the number of people who voted for Mr. Trump or Mrs. Clinton, so, to a large extent, the protests should be easy to ignore. The more one ponders the wisdom of protesting the result of an election, the more absurd the proposition becomes. The election was the result of months and months of free expression by the candidates, their surrogates, supporters, detractors, and the media. The time for marching and shouting was before the election, not after it. With any luck, that concept will sink in to the kids on the streets and college campuses and they’ll slink back to their jobs, classrooms, or parents’ basements and life will go on as usual.

Protests against the president prior to his inauguration, are likely to be ineffective. Maybe that hasn’t gotten through to George Soros and his ilk, who almost surely have funded and promoted these most idiotic of events.

But that’s not the point of this message. The point is to remind readers that the editor of this blog, Fearless Rick, himself called the election result correctly a month prior to it, calling for a Trump landslide, the result of millions of fed up Americans taking back their nation. Honestly, it was more of a hope than an educated prediction, but, as the pollsters and number crunchers themselves have admitted, they blew it. They didn’t see the millions of Americans who felt disenfranchised and disrespected by the likes of liberal goons promoting gay rights and LGBTQ liberties, who lost jobs because the government made moving industries out of America a profitable decision, who pay taxes for schools that don’t teach, elected officials and bureaucrats who don’t represent them, a media that mocks and ridicules them for being old-fashioned, out-of-step, or even selfish.

The backbone of America was awakened by a man who refused to toe the line of political correctness, who stood against open borders, who stood for the working men and women of this country, the middle class, the downtrodden, the forgotten. Donald Trump was a lightning rod for the pissed off, angry folks in the country who had seen enough of their rights stripped away and were afraid the choice of Hillary Clinton as the next president would have brought upon an epochal eventuality wherein the few remaining rights would be stripped in time.

They were probably right. Democrats and liberals alike have worked tirelessly to limit the second amendment, to nullify free speech, flout the immigration laws, disrespect the rule of law, and gradually, slowly, but incessantly, turn all of America into a totalitarian welfare state of chaos and complete government control. That was not the America most of those who voted for Mr. Trump wanted. Many of the Trump voters were older, who remembered a time when America was a safer place, a freer place, a happier place, and they wanted it back.

In electing Donald Trump as the nation’s 45th president, they may have taken the first step toward a restoration of the America, a return to morality, to honesty, to civility, to economic and true social justice. Making America great again, to borrow from Trump’s slogan, is not going to occur overnight, or even in the four years Mr. Trump will serve as president. It’s going to take a while to unwind all the bad legislation and trade deals and economic imbalances that were the result of crony capitalism. And Mr. Trump is not going to be able to do it alone. He is going to need not just the House of Representatives and the Senate but also the voices of those who voted for him and support his ideals. Winning the election was just the beginning. The left and their compliant media lapdogs are not about to go away and hide. They are going to fight back, lash out and tear at the fabric of society.

They will fail, and they will fail miserably because their vision of America, complete with free college educations, fifty million people on welfare, twenty trillion dollars of debt, overpaid government employees, and a severe lack of good, fulfilling, well-paying jobs, is not America at all. It is a liberal, dysfunctional, diseased obsession and fantasy.

The America represented by the people who put Donald Trump in office is an America of hard work and good pay, of duty to God, country and family, of fearlessness in the face of adversity, of helping neighbors and those less fortunate, of friendliness, honesty and humility. The America which will be refreshed is one of opportunity, freedom and justice for all.

It’s hard to believe that anybody in their right mind would protest that.

Go Figure: Trump Is A Winner And So Are Stocks

Editor's Note: I've been itching to write a post-mortem on the election for the past two days, but Wednesday was spent mostly recovering from the victory celebration which went late into Tuesday night and today the weather here in upstate New York is a breathtaking thing of beauty for mid-November with temperatures in the low 60s. Thus, I'm itching to get outside and enjoy the fresh air my little slice of America. I'll take my bows and victory lap for a month ago having predicted Trump's victory another time, likely at some point over the weekend.

There are more than a few points I wish to make and I am not yet over the elation of having gotten my country back to focus on penning a reasonably good essay, though I intend to in due time.

--Fearless Rick

Being just two days hence, the historic win in the presidential election by Donald J. Trump is still fresh in the mind, but already there are signs that the script has not yet been written for this chapter in American history.

Stocks, especially the Dow Jones Industrial Average, will close at record highs today should current prices be maintained or closely held.

The public had been led to believe that a victory for the Donald (can we still call him that once he's sworn in?) would be a death knell for stocks, but apparently, wall Street types see it somewhat differently, especially since not only did a Republican take control of the presidency, but the house and senate remained firmly in control of the GOP.

As strange as it may seem, Wall Street could actually believe in what Mr. Trump has been preaching and the last two days of trading may well be proof of that. Stranger yet is gold being down and silver up. Could the historic deviation from the gold/silver ratio we've witnessed over the past 30 years be starting to unwind? The best advice offered is one made a few months ago in Money Daily: buy solar panels (preferably American made).