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"The Hot Seat: Does the Republican Party Need a Re-brand? Plus, Bronies and Liberal Hollywood." Only for subscribers.
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We are deeply indebted to Bernanke! He leaves the ship in time for his successor to disengage.
We should also be indebted to Napolitano for resigning.
We should also be indebted to Napolitano for resigning.
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One of the best local dishes in Savannah is scored flounder. Maybe they should rename it scored Obama! We have gone from a philanderer to a flounderer! (See 1 below.)
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I agree with this market assessment. The market has momentum because of Fed induced spending and stimulation.
The problem is no one can tell when the hangover hits.
Meanwhile, the concept that this article embraces, about much lower multiples ,is persuasive but we also have external economic factors that might justify lower multiples this time around before everything hits the fan. Time will tell. (See 2 below.)
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Last memo before leaving for Tybee!
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One of the best local dishes in Savannah is scored flounder. Maybe they should rename it scored Obama! We have gone from a philanderer to a flounderer! (See 1 below.)
---
I agree with this market assessment. The market has momentum because of Fed induced spending and stimulation.
The problem is no one can tell when the hangover hits.
Meanwhile, the concept that this article embraces, about much lower multiples ,is persuasive but we also have external economic factors that might justify lower multiples this time around before everything hits the fan. Time will tell. (See 2 below.)
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Last memo before leaving for Tybee!
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Dick
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1)President Obama: Flounderer-in-chief?
Six months into his new term, President Obama should be feeling pretty good. After all, the economy is looking up and Americans are more confident about their prospects. The job market is healing and housing prices are up double-digits over the past year. New cars are rolling out of showrooms at the fastest pace in nearly six years. There's nothing like that new car smell.
1)President Obama: Flounderer-in-chief?
This is not a president who is in command of events. Events are in command of him.
Six months into his new term, President Obama should be feeling pretty good. After all, the economy is looking up and Americans are more confident about their prospects. The job market is healing and housing prices are up double-digits over the past year. New cars are rolling out of showrooms at the fastest pace in nearly six years. There's nothing like that new car smell.
Yet to many folks in Washington and around the country, a different odor is discernible: It's one of panic, they say, the smell of a president who is floundering. He seems to know it himself.
"I sure do wanna do some governing," Obama said at a recent fundraiser. "I wanna get some stuff done. I've only got three and a half years left, and it goes by (snaps his fingers) like that."
Most Americans wanna see some governing too. We wanna see some stuff get done. But we haven't, at least not yet. For a man who claims to have an acute awareness of time, the president has an inexplicable knack for wasting it.
Tick tock: He spent the first four months of his new term fighting for gun control, an emotionally driven response to an issue of undeniable importance. But (and with the utmost respect to the victims of gun violence) it is not an issue on par with the number one concern for the vast majority of Americans: jobs and the economy. The White House has also been in reactive mode to the IRS mess, and the revelation that the government is tracking our phone calls, email, and snail mail. On top of that came a quiet news dump, deliberately timed to occur as the 4th of July weekend was getting underway, that the employer provision in ObamaCare, the president's crowning domestic achievement thus far, was being delayed until after the 2014 midterms.
Then there is the cascading series of problems overseas. In March, it was North Korea and its threats to attack us. In June, unrest swept our close NATO ally, Turkey. Now, it's Egypt's turn for turmoil. And throughout, of course, there has been Syria. The president warned there would be repercussions if the Assad regime crossed the "red line" and used chemical weapons on its own people. A month ago the White House said the line had been crossed. But a month has passed and anti-Assad rebels complain they haven't gotten the weapons they were promised. Tick tock.
This is not a president who is in command of events. Events are in command of him.
The polls reflect growing disappointment with the president. Thursday's Real Clear Politics average of all recent polls puts Obama's approval at 44.6 percent, his lowest standing in a year and a half.
To put this in context, Obama is well below most other two-term presidents at this point in their second term. In July 1957, Dwight Eisenhower enjoyed an approval rating of 65 percent. In July 1985, Ronald Reagan stood at 63 percent. Six months into his second term, Bill Clinton had a 58 percent approval, and even George W. Bush, in July 2005 (just before Hurricane Katrina and the economic collapse dragged him down), was at 49 percent. The only two-term predecessor Obama tops is Richard Nixon, who in July 1973 was at 39 percent and falling in his Watergate death spiral.
Of course, Obama is quick to blame Republicans, particularly in the House, for many of his problems, and that's a fair point. As low as Obama has sunk in the polls, Congress' job approval — at 13.6 percent according to the Real Clear Politics average — remains mired at friends and family levels, and lawmakers in general are universally despised and disrespected. By this standard, Obama doesn't look so bad.
But Obama will ultimately be measured by his accomplishments, not how he stacks up against his enemies. Presidents are the ones who set the tone and set the agenda for the nation. This, when done right, is leadership. Americans always look to their president to provide it. Obama's fed up with Republican obstructionism? Fine: Go on TV and call them out. Challenge John Boehner and Mitch McConnell to debate immigration, climate change, and spending in a townhall-style setting. If they refuse, use it against them. Obama, aloof and insular — and convinced he's smarter than everyone else — would never get his hands dirty like this. But a change in tactics, in demeanor — something — is needed because whatever it is he's doing now doesn't seem to be working.
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Bernanke wanted to assure the world that he doesn't really intend to stop printing money… "Highly accommodative monetary policy for the foreseeable future is what's needed," he told a crowd in Cambridge, Massachusetts on Wednesday. That's nothing really new. But it was enough to send the S&P 500 up 1% to 1,670 – above its all-time closing high of 1,669.1 on May 21. And gold stocks rallied… The Market Vectors Gold Miners Fund (GDX) – which holds shares of most of the big publicly traded gold stocks – jumped as much as 6% on the news. But Bernanke's words took precedence over the split vote… though, once again, he said nothing new. We knew that wasn't the case. As we wrote in the June 28 Digest Premium…
In 2007, just before the sub-prime crisis, stocks had a P/E ratio of more than 20. Today, the S&P 500 index trades at a more reasonable 14.9 times earnings. Not many people agree with our view that the government's money printing is reckless and the outright theft of citizens. But one outspoken multimillionaire repeatedly hammers the government, the Federal Reserve, and anyone else involved in perpetuating these loose fiscal policies… He even wrote a new book about the problems happening in America today… And essentially lays out a blueprint for protecting yourself from most these problems. And it's not just talk. He sold his $16 million Manhattan townhouse a few years ago and moved with his family to Singapore. He's positioning his portfolio to protect his wealth and hopefully profit from the economic crisis we're heading toward. In addition to making a fortune in the markets (and being a proponent of sound fiscal policies), Jim has also written some of the greatest investment books in history, like Investment Biker and Hot Commodities. That's why, when we heard Jim was releasing a new book, we bought thousands of copies to give to our readers. When Jim speaks, we listen. It's a gift to have such a brilliant man walk you through the problems happening today in our country and the steps you can take to protect yourself. He tells readers the single indicator he uses to evaluate a foreign country's economy, and he shares the two most exciting economies in the world today. And most important, Jim tells readers specific assets they can buy to profit from government money printing… In the book, he explains two real assets you can buy today that could quadruple over the coming years… He calls one of the assets "one of the more important assets of any kind." And it's a great investment today, thanks to a recent advancement in technology. Regards, S&A Research -------------------------------------------------------------------------------------------------------------------------- |
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