What’s going on in the world…
Market opens higher, but quickly gave up gains, after a big selloff yesterday. There was an important reversal midday, where stocks went from up nearly 0.5% in the morning then falling fast to close down nearly 1%. It started with President Trump’s speech at the United Nations, which was direct at our adversaries. Then it transitioned back to Washington. House Speaker Nancy Pelosi announced an impeachment inquiry would commence on President Trump based on the whistleblower and potential tampering with a foreign leader looking for assistance in an American election. Sounds familiar. This puts the Ukrainians in a tough spot. Corruption has been an issue for decades. The new President has worked hard combating it. This new strain makes them vulnerable to more Russian meddling. The British Parliament is back in session, after a strategic blow for the Prime Minister when the British High Court ruled his block out illegal. A clean Brexit by Halloween does not look likely. Boris Johnson could also lose his job. The Brexit mess continues with no clear path. The Market has not cared much at all. It should. Saudi Arabia believes they will be back online with its oil facility faster than previously thought, which keeps sending the price of Oil lower. They’re also reportedly considering offering more of Saudi Aramco for sale in its widely expected IPO. The Saudi’s still haven’t responded to the attacks. The silence is deafening, and the risk keeps running that Iran claims victory and does it again without concern of retaliation. These are dangerous times. Bitcoin fell nearly 20% overnight. Margin calls was the explanation. So much for a potential safe haven status like Gold. The precious metal reigns supreme. Stocks are now lower as I type. The Tech-heavy NAS is suffering the worst, as Tech has been weak of late after a multi-year run. Nike is propping the DOW up this morning, accounting for over 30 DOW points, so the index would be down more without Nike. Oil is lower. Interest rates are higher. The Dollar is higher. The transcript was released just as I hit send. Keep those belts buckled.
Have a great morning,
Mike Frazier
