Daily Reckoning

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  • Will They Haul off Trump’s Statue, Too?

    Will They Haul off Trump’s Statue, Too?

    This post Will They Haul off Trump’s Statue, Too? appeared first on Daily Reckoning. This week, we are talking about the perishable nature of gods. The city fathers of our hometown of Baltimore have let it be known that it was time to toss out the old deities. Reports the Associated Press: After violence erupted in Charlottesville, Virginia over the weekend in response to the city’s plan to remove a Robert E. Lee statue from a park there, Mayor Catherine Pugh has renewed efforts to remove similar Confederate imagery from Baltimore. [… ] On Monday, Pugh released a statement saying that it is her intention to remove all of Baltimore’s Confederate-era monuments – Confederate Soldiers and Sailors Monument on Mount Royal Avenue, the Confederate Women’s Monument on West University Parkway, the Roger B. Taney Monument on Mount Vernon Place, and the Robert E. Lee and Thomas. J. “Stonewall” Jackson Monument in the Wyman Park Dell. The statues came down this week. All across the country, the old gods become devils. New, gluten-free gods take their places. The statue of Taney (pronounced Tawney) will be particularly missed. Roger Taney, like your correspondent, comes from the western shore of the Chesapeake Bay. …Read More »
  • The Changing Face of History

    The Changing Face of History

    This post The Changing Face of History appeared first on Daily Reckoning. Today we step away from our normal beat… turn from the daily press of events… and reflect upon the permanent things… Or the impermanent things as the case may be. Four Confederate statues were hauled out of Baltimore parks this Wednesday… in the small hours… under cover of darkness. It might have attracted a crowd otherwise — as in Charlottesville. And with potentially similar results. One of the statues, not actually Confederate, squatted just one block from our HQ. Executed in time-worn bronze, it depicted the stern countenance of Roger B. Taney. Taney was the Supreme Court justice who authored the majority opinion in the infamous 1857 Dred Scott case. The ruling denied blacks American citizenship. Taney’s statue had adorned historic Mount Vernon Square since 1887. As of this Wednesday… it adorns historic Mount Vernon Square no longer. Before: Now: We do not know who or what will replace Mr. Taney’s glowering presence atop the lonesome pedestal… if anything. We are curious about one point, however… The last surviving ship from Pearl Harbor is permanently docked in Baltimore’s Inner Harbor. That ship would be the Coast Guard cutter… …Read More »
  • Making Sense of a Weird Market

    Making Sense of a Weird Market

    This post Making Sense of a Weird Market appeared first on Daily Reckoning. There’s a stock market crash coming. Maybe. It’s been a wild period in the markets. Between earnings season, increased tensions with North Korea and CEOs abandoning Trump after the Confederate statue controversy, investor anxiety has been on the rise. That came to a head earlier this week when more than 90% of the stocks in the S&P 500 ended deep in the red. The tech-centric Nasdaq Composite plunged more than 2%. The market was heavily down again yesterday. And as I write these words this morning, the major indexes are down again. Needless to say, the big tail wind that’s been driving the broad market higher has tapered off. Does that mean that the S&P is set to plunge now? No — it could turn around and tick higher, actually. But it does mean that we don’t have as clear a picture of what’s going to happen next in the big index. But to be clear, there are some very good reasons why Mr. Market might be due to roll over. Some very smart people — including some of my colleagues at Agora Financial — think that …Read More »
  • “Hindenburg” Spotted Over Wall Street

    “Hindenburg” Spotted Over Wall Street

    This post “Hindenburg” Spotted Over Wall Street appeared first on Daily Reckoning. “This may well be one of the most important days in the future of the equity markets for a very long while.” That was today’s early-morning warning of famous trader Dennis Gartman. The Dow lost 274 points yesterday. The S&P shed 38 of its own — percentagewise, even worse than the Dow. The booming Nasdaq fared worse than both. The tech index lost 123 points on the day — nearly 2%. The three indexes all opened lower this morning. The S&P and Nasdaq have since clawed their way back for slight gains. The Dow remains in red territory at writing. And so the market skitters like a panicked colt… confused… uncertain of its bearings… uneasy of its own uneasiness. Was yesterday’s swoon the “first foretaste of a bitter cup,” to take a leaf from Churchill … or a healthy shaking of the tree, just one more opportunity to buy the dip? Today we go in search of answers… But first, what exactly frightened the horses yesterday? A terrorist attack in Barcelona claimed 14 or more souls. Scores were injured. Rumors also swirled that Trump’s top economic lieutenant, Gary …Read More »
  • Don’t Forget About The Red Swan

    Don’t Forget About The Red Swan

    This post Don’t Forget About The Red Swan appeared first on Daily Reckoning. [Urgent Note: The nation’s future and a massive debt ceiling hangs in the balance as Trump pushes beyond the Comey hearings. That’s why I’m on a mission to send my new book TRUMPED! A Nation on the Brink of Ruin… and How to Bring It Back to every American who responds, absolutely free. Click here for more details.] Given the anti-Trump feeding frenzy, we continue to believe that a Swan is on its way bearing Orange. But if that’s not enough to dissuade the dip buyers, perhaps the impending arrival of the Red Swan will at least give them pause. The chart below comprises a picture worth thousands of words. It puts the lie to the latest Wall Street belief that the global economy is accelerating and that surging corporate profits justify the market’s latest manic rip. What is actually going on is a short-lived global credit/growth impulse emanating from China. Beijing panicked early last year and opened up the capital expenditure (CapEx) spigots at the state-owned enterprises (SOEs) out of fear that China’s great machine was heading for stall speed at exactly the wrong time. The 19th national communist party …Read More »