The Market Bull – December 14, 2018.
Despite a lack of meaningful news the major averages plunged Friday wiping out all of the week’s gains and then some. Retesting critical support levels yet again. Since Monday the Standard and Poors 500 Index has slipped 31 points or 1.2% while the NASDAQ lost 49 points or .7%.
Retail sales beat expectations in November with a .2% gain on strength in online, electronics, appliances, furniture, and home furnishings.
Industrial Production also beat expectations slightly in November with a .6% gain. On strength in Utilities, Mining and High-Tech output.
A recent piece by Nomi Prins highlights the shocking disparity between the have’s and the have not’s in America as economic inequality continues to reach new all-time record highs, not just with respect to America but in the history of the world. A history that shows inequality at these extremes to be a very dangerous arrangement. Some of the highlights she cited include a 2017 report from the Institute for Policy Studies, listing three billionaires — Jeff Bezos, Warren Buffet, and Bill Gates – that have amassed as much wealth as the bottom half of American society or 160 million people. Another report from Oxfam noted that from 62 people controlling half the world’s wealth in 2016, it is now just 8 people that control half the world’s wealth. Oxfam went on to note that in 2017, while 82% of the wealth created on this planet went to the top 1%, the bottom half of the global population saw no wealth gains at all. This means that the other 49% received 18% of the wealth gains that year. Details on earned income show a similar picture and I have pointed this stuff out for years. The history of periods like this doesn’t end well and poses a significant threat to society and the wealthy. You can read the whole thing HERE.
Standard and Poors 500 Index closed at: 2,599.95 down 50.59
NASDAQ finished at: 6,910.67 down 159.67
Gold ended trading at: $1,242.20 down 5.20
This is Caleb Lawrence Registered Investment Adviser I can be reached directly 831-334-5318 or stop by my office 5321 Scotts Valley Drive in the Scotts Valley Plaza, Suite 202, Scotts Valley, Ca, 95066.
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