Against all of the good earnings news - STX, INTC, GS, CREE, EBAY, PNRA, SBUX, FCX, etc. - is the inept, gutless populism of the president, who seems determined to obscure the health care defeats by turning on the banks and the overall wealth of millions of people. What a tone he is setting; even though Goldman Sachs is not a depository bank, the rhetoric wrecks the hue. So depressing and so punitive. It can color anything. Oil is barely up, and that matters. Gold is down, and that matters. The dollar has been strong, and that matters.
I think Doug Kass on RealMoney is right that the populism that the president is tapping into and fomenting makes anyone who is trying to make money in finance a target. The fear he is inspiring in business and the anger remind me of what he did last March that caused us to give up thousands of Dow points.
I don't know if he can do that this time; the earnings are very strong. But he sure can blunt the positives, creating a moment that is definitely negative enough to undo everything I have outlined above.
Macro plus the president; toxic combo for stocks. Just ugly.
long INTC, GS
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