Rising Wages, Tesla Dump, And A Battery-Chill Maker

One would think the market would be tumbling today, given that the breathless media has incessantly told us the coming Fed rate hike is a market killer.

- The Federal Reserve's latest Beige Book report, out on Wednesday, indicated that in 11 of the Fed's 12 regional districts, signs of wage growth were everywhere.

Yep, that’s right. The market is rising on news about the single most important variable upon which the Fed will raise or not rates – wages. Wages are rising steadily and have been for three years. What we are seeing, folks, is the smart money buying the dips. Are you?

Shooting your mouth off in a room of gunslingers might get you shot. Juxtaposed against a backdrop of recent bad numbers, an announcement of a secondary stock offering, and missed delivery targets on past products, Mr. Musk says he can meet a pushed up production schedule for his nascent Model 3. This could well get Tesla shot, in the foot at least, given that his suppliers are disagreeing with him.

- Tesla's production push comes at a time of high demand for machinery and tooling created by a surge in product launches coming from established automakers, said a Detroit-based supplier sales executive.

The above suggests opportunity. Tesla is but one in a moneyed group of car producers who need specialized parts. The suppliers are backed up with high demand. Check out Modine Manufacturing (MOD), a specialized part supplier for electric cars … opportunity?

Duh Quote of the Week

- "You need to be diversified. To own some real estate makes sense, to own some equities makes sense, to own some cash and bonds probably makes sense …”

Seriously, Dr. Doom, have you gone rational on us?

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