I did not see yesterday’s market slide coming, but today’s follow-through makes total sense.
- U.S. funds mangers recommended a cut to equity allocations in April to their lowest since the financial crisis.
It is a guess, but maybe, just maybe, a bit o’ panic is swirling around the street. Actually, we have seen this so many times since mid-2009, it should have a name – The Prattle Rattle. The market nears a top and the talking heads bring on the negative prattle that rattles investors. Prepare for a mini-downturn cycle.
- As bad as the day was for stocks, it's was even worse for the U.S. dollar. The U.S. dollar was absolutely crushed, pushing the U.S. Dollar Index to the brink of a major meltdown that could actually do a lot of people a lot of good.
And then prepare for an upturn cycle as a weaker US dollar means higher profits for the multinationals, such as GE, and the money that left in panic returns when the buy is right. Yup! Buy the dips (so last seven years).
- GE decided to substantially reduce its exposure to financial services and generate 90% of its overall profits from the industrial business by 2018.
A down-the-road breakout for GE, as it wisely unwinds GE Capital and shifts its focus to digital-industrial technology?
Duh Quote of the Week
"We believe these results are further evidence that Amazon's investment in infrastructure, logistics, and Web services is accelerating market share gains, cash flow growth and continued high returns on invested capital," Goldman Sachs analysts wrote in a client note.
Wow! Really? Amazon dun good …