Riddles, So Many Riddles

What does one do when things don’t add up?

In this Bernanke – Trump market, apparently you delete the half of the equation that screws up the answer.

S&P 500 Earnings Expectations

Like yesterday on CNBC, I heard a young analyst/trader, looked like under 40, so at most he was 0 and 10 years old in 1987, the year we had the biggest one day market decline ever, some 23 %. He was pointing out that because of Corporate tax revisions, S & P earnings are going to go through the roof, and yes, you just have to push stock prices higher.

How Does this Work?

How does this work, when you hear the people working on Government Debt point out that the new Corporate Tax policy will be revenue neutral.  I guess this means that you buy the 250 stocks whose taxes are going down and sell the 250 stocks whose taxes will go up.  Maybe a good place for some in-depth research.

Eureka Tracking Fund Update 2/13/17

Based on the 1/11/2017 starting point

ECT Marketocracy Fund   (Tracking a Trump Success)  + 1.4 %

ECT Marketocracy Fund   (Tracking a Trump Failure)  + 2.2 %

Janet Yellen Testimony Today

Yellen’s opening statement goes along with our thinking, a FED hike in March and that this will be the only raise this year.  Longer term we still believe that the bottom indicator for the long term economic cycle will occur when the 10 week average of the 10 year T-Bond interest rate goes under the 10 week average of the 3 month T-Bill interest rate.

 

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