Of course the big news over the weekend was what appears to be a temporary truce in the trade war … but … as always … the devil is in the details … and there still seems a bit of vagueness as to what both sides have agreed to.
Nevertheless, the investing public appears to like what they have heard so far … heck, at least both sides are talking … and U.S. markets began the first trading day of the month sporting a decent advance.
But there is another interesting development happening overseas … and with the G-20 meeting and the news on the death of President Bush … it seems to have been lessened in importance. The county of Qatar announced that they will leave the OPEC family in January. While Qatar has substantial quantities of natural gas … and, according to Persian Gulf Fund, is the world leader in the export of Liquified Natural Gas (“LNG”) … it is the first Middle East country to leave OPEC … and some are wondering if this demonstrably weaken OPEC’s importance on the world stage.
So … back to markets.
Of course we have varying opinions … as we always do … and while Invesco gives the view that the November jobs report might spark a major sell-off … the Raymond James Chief Strategist feels a 12% rise over the next 5 weeks is in the cards! One might be right … or both may be wrong … but I did take a degree of solace in a tweet put out by Ryan Detrick of LPL Financial where he pointed out that since 1950, December has never been the worst month of the year for the S&P 500. Ryan always has good stuff, in my view, and can be found at @ryandetrick … for those with Twitter accounts.
With all of this happening, I think the most interesting story of the weekend (at least for tech lovers) is that a man … drunk … was asleep behind the wheel of his Tesla … as it traveled 70 MPH on a highway on autopilot. Police became aware and were able to pull in front of the car, slowing it down (thanks to its distance capabilities) and eventually bringing it to a stop.
It was, of course, a very dangerous episode … but to read that this occurred … and the car acted the way it did … leads me to believe the adoption of this technology will happen rather fast.
I hope so.
My 14-year old will be driving soon.
Have a great weekend,
Joseph G. Witthohn, CFA
Emerald Asset Management PA, LLC
610 Freedom Business Center Drive
King of Prussia, PA 19406
Direct: (610) 285-9905
… as of 11:02 AM today …
Quick Look at the News
Markets jumped at the open ... as indications by the Trump Administration are that the U.S.-China trade war will face a temporary truce (CNN)https://www.cnn.com/2018/12/03/investing/stock-market-today-dow-jones/index.html
... but China is not the only concern when it comes to foreign countries. Remember OPEC? Well, there are some cracks appearing with regard to the makeup of the organizations (CNN)https://www.cnn.com/2018/12/03/business/qatar-opec-withdrawal/index.html
On the topic of foreign countries ... it seems some borrowers in China use nude pictures of themselves for collateral. Don't worry ... I have no plans on borrowing money from China (TimesNowNews)https://www.timesnownews.com/the-buzz/article/shocking-many-loan-companies-in-china-are-demanding-nude-selfies-from-millennials-as-collateral/324451
One of the interesting things with market sites is to see "expert" opinions. Here is one calling for the possibility of a market sell-off (CNBC)https://www.cnbc.com/2018/12/02/november-jobs-report-could-spark-a-major-market-sell-off-invesco.html
... while another sees a pretty incredible surge to occur ... lasting just past the new year ... which would make some investors certainly get into the holiday spirit (CNBC)https://www.cnbc.com/2018/11/27/wall-street-bull-sees-12percent-stock-market-surge-over-next-5-weeks.html?recirc=taboolainternal
Not only is it uncomfortable (sometimes) to start a conversation at an event filled with strangers ... but ending one can be just as awkward ... here are some ways (ArtofManliness)https://www.artofmanliness.com/articles/how-to-end-a-conversation/
... and I don't think Tesla will use this in their marketing brochures ... but a drunk driver fell asleep with the car on autopilot ... and ... well ... the autopilot seemed to work (Fortune)http://fortune.com/2018/11/30/man-arrested-drunk-driving-asleep-tesla-autopilot-mode/