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February 10, 2020 | Either Drink the Kool-Aid or Shut Up

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.

Wall Street and the conference room at Goldman Sachs are apparently the only places on earth where no one seems terribly worried about the growing spread of coronavirus. Crazed investors have driven U.S. stocks into a nearly vertical ascent that will soon push the Dow Industrials to 30,000.  Over at Goldman,  a couple of heavies are predicting the virus will not have much impact on the global economy and even less of an effect on America’s consumption-driven, debt-financed GDP. Tell that to China, India, Canada, Africa and a dozen other countries where officials are bracing for a dramatic slowdown. Read more about it  at ZeroHedge.  Complicating the picture for U.S. stocks is the fact that they are being viewed as a haven asset by foreign investors. Just what stocks needed 11 years into a very mature bull market that could use a rest, even in the estimation of the most wildly bullish fund managers. There is also the problem of a very strong dollar that is certain to hurt the earning of U.S multinationals for the foreseeable future. Even so, it’s hard to imagine what could possibly end America’s decade-long shopping binge or even slow it down. We’ll find out eventually, of course, but for now it’s either drink the Kool-Aid or enjoy the show from the sidelines.

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February 10th, 2020

Posted In: Rick's Picks

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