Best Of The Web
“It’s clear that no matter what the Federal Reserve and Chairman Jerome Powell did and said at the final monetary policy meeting of the year, they couldn’t make stock investors happy. Despite the Fed doing what had been expected, which was boosting interest rates for the fourth time this year and cutting its 2019 forecast to two hikes from three, the S&P 500 went from being up as much as 1.54 percent to down as much 2.25 percent.
The Fed’s decision should have been good news for stocks, as any more of a dovish tilt would have raised concern that the Fed sees the economy deteriorating much faster than thought. East West Investment Management Co. market strategist Kevin Muir captured the zeitgeist in a blog post before the Fed’s statement when he wrote that “the market has talked itself into believing the Fed will err on being dovish, so the bar has been raised for Powell’s performance.” Perhaps, but the reality is that the equities market has been on a steady decline since early October and the path of least resistance, especially with the year rapidly coming to an end, is lower. What we know is that the stock market is poised to set its low for the year in December for only the sixth time in the past 91 years. When that happens, stocks are typically either in a long-term downtrend for a large part of the year or break violently lower in December, according to Bianco Research. This is significant because when this happened in the past, the following year was not a good one for equities. Recessions occurred in four of the five subsequent years and stock returns “were nothing short of a disaster,” according to Bianco, with losses averaging 18.4 percent. The lone exception to a recession was 1941, when the Pearl Harbor attack caused the market to drop to a new low that December. While 1942 did not experience a recession, stock returns suffered for the first half of the year before rebounding to end 12.4 percent higher.”
JJ Editor's Daily Picks
"China’s Hydrogen economy Is coming: The world’s electric-vehicle king is seeking leadership in fuel cells, too. Investors are probably right to be excited."
"It would be the height of naivete to believe the book is closed. Democrats on Capitol Hill are not just going to take the attorney general's conclusions and move on to new things."
"Netanyahu has brazenly allied himself with Trump’s Administration and his family (including the cryptic peace negotiator, Jared Kushner, whose family he has known for years), as well as with the Republican Party and Republican funders..."
"Us is stranger than Get Out, with deeper philosophical undercurrents flowing through it. The rabbit that greets you at the movie’s start is an invitation. Will you follow, like Alice in her Wonderland?"
"Democrats and Republicans seem to have irreconcilable views on economics, but on one point they agree: Small business is better than big."
"Sanctuary, a digital astrology start-up backed by $1.5 million in venture capital, made the considered decision to launch its service on Wednesday — the dawn of the new astrological year, when Pisces gives way to Aries in the astral cycle."
"It is a Vessel for the depths of architectural cynicism, of form without ideology and without substance: an architectural practice that puts the commodifiable image above all else, including the social good..."
"Apartment Therapy posted a photo to Instagram of a bookshelf with the spines facing inward, and the dramatic response — dozens of users denouncing the trend as anti-intellectual, even comparing it to book-burning ..."
"Perhaps it is time to add parenting to the growing list of “replacement religions” competing for our attention and currency these days, a list that already includes workism and politics."
"Only a fraction of the world’s yeast species have been discovered. The ones still out there could revolutionize health care, green energy, and beer."
"We’ve recently fixated on expunging “fake news” but the medical world also has its charlatans. The snake-oil salespeople, masquerading as health professionals, are naturopaths."
"...should we continue to teach thinkers like Kant, Voltaire and Hume without mention of the harmful prejudices they helped legitimize?"