Good morning. With the S&P hitting yet another intraday high … no doubt, in celebration of a “peace treaty” with the European Union … there are a few articles pointing out Oppenheimer’s boost in the year-end target for the index to 7100 … around 11% above where are today. Sure … investors will no doubt applaud the wisdom behind this call … ignoring one important item. Oppenheimer listed the target as 7100 back in January … lowered it to 5950 in April … and now just brought back their original number. Let’s hope this one holds as the market digests just what the effect of this will be on corporate earnings and (gulp) inflation … if companies decide to pass on increases to the consumer. If you haven’t seen the movie “Dumb Money” … I very much suggest it … and may refer to it in a course I teach at a university as it hits such topics as hype, options, ethics, and risk. But it also addresses people who are angry at Wall Street … as big players were seen trying to take advantage of those with fewer resources. This is brought up today as I am similarly angry … no, not at Wall Street or hedge funds … but at Washington … as one major problem continues. It seems a congressman (from Pennsylvania) was called on the carpet by an ethics committee and called on to divest holdings in steel company’s stock his family owns. Why? The congressman learned from the Commerce Department a steel plant in his district would not be closed. The next day, his wife bought 5,000 shares … and made a 279% profit in under a year. While the congressman says it was possible his wife overheard his conversation (as they were in the same room) she refused to comment as questions would be “invasive.” When will someone finally put an end to “insiders” in Washington being able to profit from advance knowledge? Sorry … I’ll get off the soapbox … but this really gets me riled up. I am going to point out that I am in a bit of a quandary today … so my focus is all over the place … as I am preparing to fight the traffic (and construction) and head up to JFK Airport … using my “older car” to take the trip. On Saturday, I was in Delaware … as I have a minor part in a film. Wanting to get home after a long day, I rushed out of the area where the cars were parked … and … well … the cameras on the car are great at showing front, rear and sides … but down? Not a chance. I went over a bit on an embankment … heard a loud bang … backed up and drove home with no issue … until I went to get something out of the car and realized the passenger door wouldn’t open more than an inch. I looked down and the frame of the car … in a few areas … was smashed in. Seeing some frame damage quotes on a Tesla at almost a quarter to half the price of a new car … well … I’m not very comfortable right now. I hope Oppenheimer is finally right with their S&P forecast. I need stocks to go up to pay for my car repair. Have a great day, Joseph G. Witthohn, CFA Have any questions? Please contact info@teamemerald.com
|
Call Us: +1 (800) 722-4123 
Back