After stocks rose on the heels of their frightening October to late December selloff, like an ancient deity rising from the dead, with the S&P 500 and Nasdaq Composite only five months later making new all-time highs, analysts were talking about the goldilocks economy and the goldilocks market for stocks.
All of a sudden, everything’s changing.
The goldilocks economy is about to be sorely tested with the trade war between the U.S. and China going to DEFCON 3. And the goldilocks market is being threatened by three stocks in bear market mode.
You know what a protracted trade war could do to the economy.
Because stupidity doesn’t deserve a lot of space to be discussed, I’ll keep this really brief.
Uber is stupid for waiting so long to go public.
Not only will their IPO bomb, if not on the first day (though that’s my bet), then shortly thereafter. But by going public now with their debut and reputation about to be tattered, they’re going to disenfranchise their drivers who will collectively further distance the company from maybe ever making a profit.
Forrest Gump reminded us, “Stupid is as stupid does.”
The once high-flying Boeing Co. (NYSE:BA) stock and the company’s 737 Max 8 planes have both been grounded.
While the FAA (Federal Aviation Administration) re-certifying the 737 Max to fly again is more a question of when, not if (at least Boeing and its investors hope), the flight of Boeing’s stock is less certain.
Will planes and the stock take off again, or might a long grounding of the company’s mainstay earnings generator flatline the stock or even knock it back to earth?
The Dow is quickly closing in on its record high of 26,743.50, which we saw mid-September of 2018. This morning, it broke out at 26,639.10 – 46 points higher than yesterday’s close. Even the Nasdaq Composite, which includes tech titan Apple Inc. (NasdaqGS:AAPL), opened nearly a full half-percentage point higher, undoubtedly due to AAPL punching through $212, leading its market cap back to $1 trillion-status… Click here to watch.