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September 30, 2018 | Market at Record Highs Is Flouting Big Risks Just Ahead

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

So much is riding on the outcome of this week’s FBI investigation that stocks are likely to remain unusually subdued until Kavanaugh’s appointment is decided. If the Senate does not confirm him for a seat on the Supreme Court, this could brew a perfect storm for investors in October that would feature the following: 1) Democratic majorities in the House and Senate; 2) Trump as a lame-duck president; and, 3) a coincidental escalation of the tariff war with China.  Think of the ‘Trump rally’ in reverse and you can see how the Dow might be trading 5000 points lower in six weeks. Putting aside the effects Kavanaugh’s rejection might have on the stock market, it would be catastrophic for America, turning seething hostilities across the red state/blue state divide into a potential civil war. This would likely happen even more quickly if Kavanaugh wins, since the left has threatened to impeach him and Trump.  They are certain to make good on this threat if they win big in November, unsettling America politically and economically for the foreseeable future. With the stock market trading in record territory, it is clear that investors are blithely oblivious to such risks and unprepared for the consequences.

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September 30th, 2018

Posted In: Rick's Picks

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