Mr. Sensitive

November 15, 2013

FSX Friday Update

Filed under: Uncategorized — lbej @ 15:07

I’m not waiting for the market close to post the update, because this isn’t fun for me anymore.  The market is up again, with stocks screaming to new all-time highs again and ‘analysts’ on Wall Street raising price targets again, even as companies like Northrup Grumman and Boeing (+75% and +92%, respectively, YTD) announce more layoffs and relocations.  The S&P 500 is up 26% in 2013 and up nearly 200% off the lows of 2009, when the U.S. taxpayers were called on to bail out the banks and save the global economy.  Those are the same middle-class taxpayers facing layoffs today.  The most layoffs are coming from JP Morgan, Bank of America, and Wells Fargo—that’s right, the banks taxpayers saved.  The Fed is manipulating interest rates on an unprecedented and reckless scale, making it easier for large companies to borrow cheaply and invest overseas.  Congress and the President are fighting over the poorly-conceived, miserably-executed public-private mish-mash that I’m finally coming around to branding as Obamacare, while multinational corporations grind the American middle class into dust and get tax breaks for doing it.  But the market’s up, right?  Everything must be fine.

This is an asset bubble.  Why?  Because the ‘reasonable’ valuations bulls cite are based on rock-bottom interest rates created by a level of government control of the debt market that would impress Soviet bureaucrats.  Once the ‘inefficiencies’ (jobs) are wrung out of the economy and every American is working at Wal-mart or McDonald’s, further price cuts will be impossible, inflation will return with a vengeance, and the Fed will be forced to raise rates sharply, annihilating corporate profit margins and setting off a wave of job cuts that will make the 1930s look like the 1990s.

That’s the endgame.

The Family Stock Index trailed the broader stock averages badly, and surrendered the last of its year-to-date outperformance.  Good.

Advancers

  • Wilson (WILC) +9.1%.  He hates his life but still believes it can and will get worse.  That’s going to be a crowded trade if things don’t change.
  • Zero (ZAGG) +4.5%.  Zero manages to navigate low-wage America with his dignity and values intact, and I think that’s really commendable.
  • Mario the Younger (MAR) +2.7%.  Mario’s going to have a little baby to cheer him up, and little babies are good at that, poop explosions notwithstanding.
  • Brinkley (BCO) +2.1%.  Still doesn’t talk.  Maybe he’s on to something—I wouldn’t talk to me, either.

Decliners

  • LULU -3.0%.  She hasn’t used her litterbox in weeks and it’s cold outside.  That suggests—to me—that she’s crapping in the house somewhere.  I haven’t found out where, but I will.
  • Ruby (RJET) -5.9%.  Tough week to be a Democrat.
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1 Comment »

  1. Maybe Lulu’s pooping somewhere in her beloved Brinky’s room.

    Comment by Katie Eure (@euregirlsandboy) — November 15, 2013 @ 15:36 | Reply


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