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The Best of What They Said and I Read Week Ending 2/11/18

Short excerpts from articles I found interesting.

I may not agree with the author and the following material is not intended as investment advice.

The Wall Street Journal – February 9 - 10, 2018 – U.S. Stocks Rebound as Wild Week Ends– by Corrie Driebusch and Riva Gold

“…“U.S. stocks closed their most turbulent week in years with a sharp swing higher, temporarily stemming the bleeding in the market but doing little to quell investors’ fears of a prolonged downturn ahead.  Major U.S. indexes ended the week more than 5% lower, their worst loss in more than two years…The Dow Jones Industrial Average—which rallied 330 points, or 1.4% Friday—had swung at least 1,000 points in all but one day this week and changed direction a total of 53 times. After dropping more than 3% on Monday and Thursday, the Dow and S&P 500 entered correction territory—a fall of more than 10% from their highs two weeks ago.”

“…The Dow’s 5.2% drop for the week marked its steepest decline since the week ended Jan. 8, 2016. The index lost 1,330 points for the week and is trading near late November’s levels. The S&P 500 and Nasdaq Composite also suffered their worst weeks since January 2016 and February 2016, respectively…Trading volume for the week was the highest since August 2011 when Standard & Poor’s stripped the U.S. of its triple-A credit rating during the debt-ceiling crisis.”

“…Many investors say the pullback in stocks was overdue, and that even though they expect further declines,they don’t foresee an economic recession in the near future. Earnings in the U.S. continue to beat Wall Street’s’ expectations, and many investors and analysts cite that as a reason the rout can’t go on much longer.”

Barron’s – February 10, 2018 – After Correction Pain, More Market Gain? – by Ben Levisohn

“…And what a strange correction it has been. Unlike the past ones since the end of the financial crisis, this correction was caused by fears of too much growth, rather than concerns that there wouldn’t be enough. When the S&P 500 tumbled 13% from Nov. 3, 2015, through Feb. 11, 2016, it was caused by a collapse in oil prices that then spread into high-yield bonds, raising the specter that a recession was looming. Not this time. Economic data continue to come in strong—the Atlanta Fed’s GDPNow indicator estimates 4% growth this quarter—while companies continue to report strong earnings and give upbeat guidance even when the benefits of tax cuts are excluded.”

“…Sure, we can cite a litany of reasons for the correction. The market was overbought and overvalued. Investors had misjudged inflation and miscalculated how high bond yields could go. But really, we were just overdue. Too many traders had bet the market’s calm would last forever. It’s probably the most overused statistic about this market, but the S&P 500 had gone more than a year since its last drop of 5% or more.”

U.S. Global Investors – February 10, 2018 – Investor Alert – by Frank Holmes 

“…Veteran investor Jim Rogers believes that the next bear market will be the worst in his life, saying that “debt is everywhere, and it’s much, much higher now.” Chief investment strategist at BMO Capital Markets Brian Belski says that markets will hit rock bottom this coming Monday, which is the worst day of the week in terms of historical price performance, writes Bloomberg News.”

“According to an article from the International Business Times, Venezuela is the cheapest place in the world to mine bitcoin. Given the differences in electricity, mining in Venezuela is only about $530, which is less than half of what it costs to mine the digital currency in Trinidad and Tobago. On the flipside, the most expensive country in the world for mining bitcoin is South Korea, the article continues, where it costs $26,170.”

Fortune – February 2018 – Women Senators Break A Record, But There’s Still A Long Way To Go

  “After embattled Sen. Al Franken resigned his seat in January, Democrat Tina Smith took his spot. Her swearing in was a watershed moment, bringing the number of women in the Senate to a record 22.  But despite recent year’s progress, just 19.4% of members of the House of Representatives are women (it’s only slightly higher in the Senate), a weak showing relative the rest of the world.  The U. S. places 99th globally in terms of percentage of female legislators or parliamentarians – two spots below Saudi Arabia.”


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