In The News – Thursday, August 28th Edition
This phone app will let you check to see if the manufacturer
of a product leans toward the Republicans or Democrats. You just scan the bar
code and it tells you the percentage of contributions made to each party. This
could be very helpful. I’d hate to accidentally buy some Democrat baked beans
or shaving cream.
I’ve mentioned Kickstarter projects from time
to time and have personally invested in a few. This tricked out cooler is
apparently the most funded project of all time on
Kickstarter. It may be the ultimate tailgate party cooler.
It’s even got a built in blender for those frozen Margaritas.
I commented in this morning’s Reveille about Ed Yardeni’s bullish outlook being confirmed by rising consumer confidence.
In his Morning Briefing, he had some bullet points that caught my eye because I
am playing on the same sheet of music. He begins with 2015 by 2015? Catchy, but
probably too conservative. He suggests the bull is running ahead of schedule,
which my work also indicates. I don’t consider it worrisome, however, and
apparently neither does Dr. Yardeni. His math for 2015 is E=$140, P/E=16.5 and
P=2310. Not bad. He makes the point that “the longer the expected economic
expansion, the higher the P/E.” I would also point out that there is a clear
relationship between high P/E’s and low inflation. As Ed points out, this bull
market is currently the fifth-longest of the 44 we’ve seen since 1928. I would
argue that there is a strong probability is will be the longest before it comes
to an end. I addressed that point in this morning’s Reveille.
Here’s an interesting map that shows the number of instant background
checks per 100 capita. If I were a stick-up guy or carjacker looking for
somewhere to set up shop, I’d avoid Kentucky unless I wanted to get lead
poisoning. Texas is fairly low on the scale, but that’s probably because
everyone older than 12 already has a concealed carry permit. Illinois is coming
on strong, too.
Here’s a very good explanation of “tax inversion” and the reasons behind it. “The argument is even weaker for corporate taxation; it
boils down to ‘the police kept people from sacking your first headquarters, so
therefore you owe us 35 percent of everything you make, forever.’ Loan sharks
and protection rackets offer more reasonable terms than this.”
Here are two bears that think we could get a
50-60% correction. Would it be unkind of me to mention that they’ve made
this call before? Ms. Doolittle
called for a 50% correction in February 2012. Wonder how that worked out
for her? We’re looking at the same charts and I believe I’ll stick with my