Mind and Destiny

“I make no pretension to patriotism. So long as my voice can be heard ... I will hold up America to the lightning scorn of moral indignation. In doing this, I shall feel myself discharging the duty of a true patriot; for he is a lover of his country who rebukes and does not excuse its sins. It is righteousness that exalteth a nation while sin is a reproach to any people.”- Frederick Douglass

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Location: Delhi, N.Y., United States

The author and his webmaster, summer of 1965.

Monday, July 18, 2016

Stock Market


For a few weeks, American stocks have been riding a bullish wave of momentum.  The Dow in back to all-time highs.  The Nasdaq has a ways to go before it hits a new record, but the tech-heavy index is again above 5,000.  Investors are realizing that they have to put their money somewhere.

Last month, panic caused the global financial markets to be concerned.  Briefly, there was even some worry about the American stock-market.  Initially, European stocks were perceived as being a huge risk following the British withdrawal from the European Union.  There are still serious concerns about the health of China and other emerging markets.  European and Japanese bonds have yielded below zero, and oil commodities have started to retreat again after a temporary supply shock pushed it back above $50.

Despite concerns about sluggish growth and the upcoming presidential election, American stocks are much more stable than most other major developed and developing countries. 

Chief investment officer with Huntington Bank, John Augustine believes that the U.S. is the best place to invest in right now.  As long as companies report decent earnings for the second quarter stocks should keep climbing.  He expects consumers will continue to spend and travel and that the housing market will remain strong.

Augustine predicts that it won't matter, who wins on election day, since there will be more gridlock in Congress.  Our military-industrial complex will benefit, because both Trump and Clinton are more hawkish than dovish when it comes to national security.  Defense contractors could be winners regardless of what happens in November.

The Federal Reserve seems to be suggesting that it's in no hurry to raise interest rates again.  And the latest retail sales figures for June showed that consumers are still spending, especially on their homes.

***Interesting, but I won’t be investing in the stocks if Trump wins.

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