Advisor Login Contact Us

Today I Believe There is no Leadership; There is Only the Positioning of Diametrically Opposite Views.

For the first time in many weeks, I can write there was little to discuss about yesterday’s trading.

Yes I can reiterate about the incredible rally in Treasuries which just posted their best monthly return since December 2008, leaving Treasuries in my view are more valued than the NASADQ was in February 2000.

Or I can again mention about the inmates running the Greek asylum or the President’s budget which is DOA.

Or maybe I can again discuss growing global anarchy or the huge plunge in crude which is threatening the very existence of countries and is ripe for an oversold rally.

However all the above is known with little change.

The other day I had conversation where the person only wanted certainty.  In my view today is perhaps more uncertain than 2008-09.  Wow!  What a sensationalist comment for the face of American capitalism was then changing on a daily basis.

Today I believe there is no leadership; there is only the positioning of diametrically opposite views.  There is no “All for one and one for all” ethos, lacking a unifying person that convinces all that the impossible can be accomplished.

How long will such an environment exist?   Unfortunately foreign policy cycles are long and I will argue that the world is only at the introductory salvo.  Not an encouraging view given approximately 48% of the S & P 500 revenues and 52% of the S & P 500 profits are generated via trade.

The Dow however did stage a late day rally, the result of perhaps of a Greek debt deal.

Last night the foreign markets were up.  London was up 1.17%, Paris up 1.22% and Frankfurt up 1.18%.  Japan was down 1.27% and Hang Sang up 0.29%.

The Dow should open moderately higher following the news of a Greek debt swap which potentially ends the possibility of a write down.  Will it work?  Oil  is up for the fourth consecutive day.  The 10-year is off 13/32 to yield 1.71%.

Return To Index Page
Ken Engelke

Chief Economic Strategist Managing Director

The views expressed herein are those of Kent Engelke and do not necessarily reflect those of Capitol Securities Management. Any opinions expressed are statements of judgment on this date and are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated or projected. Any future dividends, interest, yields and event dates listed may be subject to change. An investor cannot invest in an index, and its returns are not indicative of the performance of any specific investment. Past performance is not indicative of future results. This material is being provided for informational purposes only. Any information should not be deemed a recommendation to buy, hold or sell any security. Certain information has been obtained from third-party sources we consider reliable, but we do not guarantee that such information is accurate or complete. This report is not a complete description of the securities, markets, or developments referred to in this material and does not include all available data necessary for making an investment decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. If you would like to unsubscribe from this e-mail distribution, please reply to this e-mail and indicate that you wish to unsubscribe in your response.