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DARK CLOUDS ON THE HORIZON?

May 28, 2019. Momentum indicators are turning down and would indicate the stock market is heading lower. The majority of the Core Portfolio holdings are bonds and income oriented investments, and they typically follow the stock market in sympathy-altho the declines are less.

So, we anticipate declines in the weeks ahead. Daily movements will be up and down, but we look at the longer term trends. Further declines would not be terribly shocking as the N Korea and China trade talks have essentially broken down. As we have said many times, most of the smart financial advisors that we follow never expected any agreements.

BUT……. if you look at market trends over the last thirty years, market set-ups like we have seen over the last six months typically tell us the market heads higher. Maybe the downward pressure that we talked about above will be temporary. We shall see.

Which leads up to Trump. Failures mount up like the ‘wall’, the China issue, the job approval rate at 46%, and numerous declining economic indicators….and the never ending hate speech by the ultra liberal press continues to brain-wash the voters. If the economy is bad next year with the election in November, Trump will be out. And we believe this bodes badly for stocks especially if one of the whack-job socialist candidates gets in the White House.

btw………we are happy to read this week that the biggest hater CNN continues to drop in ratings.

Bottom line: we continue holding all positions but are not hesitant to sell.

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The liberal press refuses to talk about it. But it appears the FBI, Justice Dept and CIA corruption in the Russia Gate mess will eventually be exposed. Full article linked below.

The evidence already public indicates that Robert Mueller must have known as early as the date of his appointment (and likely before) that the predicating evidence for his inquiry was false. After all, his soon-to-be lead prosecutor, Andrew Weissmann, was informed of that in no uncertain terms by his DOJ colleague, Deputy Attorney General Bruce Ohr, in 2016. Justice may seek to know why Mr. Mueller did not inform the target of his inquiry that this was so. The answer to that may be that Mr. Mueller’s true mission was to disable Mr. Trump as long as possible while setting an obstruction of justice trap — which also failed tactically.

https://www.zerohedge.com/news/2019-05-24/trump-strikes-back

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Research by Bloomberg, the AFL-CIO and others has calculated a more than 1,000% increase since 1950 in the CEO/average worker pay ratio. In the ’50s, a typical CEO earned about 20 times the paycheck of the company’s average worker. Last year, the pay ratio for CEOs at firms listed on the S&P 500 was about 361 times that of the average daily worker, according to the AFL-CIO. The big gains over that time have largely been driven by the steady growth of the equities market since the 1980s, as stock compensation has become a more common component of CEO paychecks.

FULL ARTICLE

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