BloggeRhythms

Searching sources, trying to attain understanding of today’s market sell-off, an interview was found conducted by Carl Quintanilla on Squawk on the Street in which CNBC’s Jim Cramer said “that it might feel good to sell, but don’t do so in a panic because you might not be able to get back in.’

Citing bad earnings, fears of tightening by the Fed, and the potential for invasion of Ukraine by Russia as factors in stocks plummeting and some alarm across the board about the market, Cramer said, “Look I’m not negative, I’m trying to give you a positive scenario here. I’m saying when stocks are down this much, Carl, that you shouldn’t just say, ‘Holy cow, I’m getting killed,’ because you should realize you’ve been getting killed.”

“So now you have to decide what stocks are down a certain percentage from their high, that still could be worth a great deal,” he said. “And those are ones that you have to do some buying.”

CNBC’s David Faber circled back to the general sense of dread, saying “But Jim, it’s extended far beyond that part of the market to names that you know very well, that are down dramatically off their highs after a very strong year last year, many of them. But it doesn’t mean that the pain is not felt sort of broadly speaking here.”

Cramer responded, “But should we just decide that it’s over? And let’s look at selling here, and then betting we can get back in? That’s the question.”

“Who’s that good? Are you that good?” said Cramer. “I mean, is this something that you can do easily?”

Further insight was gained in an article @marketwatch.com by Jeffry Bartash, a Washington reporter.

Bartash writes: “The U.S. economy dropped down to a slower gear in January amid a record outbreak of coronavirus cases that intensified labor and supply shortages, according to pair of IHS Markit surveys of senior business executives.

“A “flash” index of service-oriented companies tumbled to an 18-month low of 50.9 from 57.6 in the final month of 2021, IHS Markit said. A similar gauge of manufacturers dropped to 55 from 57.7 in December — a 15-month low.

The flash IHS surveys give the first clear indication of the damage done to the U.S. economy in the first month of the new year. Any reading above 50 means businesses are growing and numbers above 55% are quite healthy. Yet conditions aren’t as good as they were last fall, no thanks to the latest strain of the coronavirus.

“Labor shortages, employee absences and the omicron wave reportedly weighed on growth,” IHS Markit said.

“Big picture: Omicron clearly dented the economy in January. Millions of people missed time from work and the virus disrupted already strained supply chains. Restaurants and other businesses that “serve” customers directly were the hardest hit.

“Yet with cases peaking, most business leaders believe growth will re-accelerate in the near future. Their biggest problem is an ongoing lack of supplies and labor.”

At the same time, inflation causing price increases were the slowest since last spring, suggesting that supply bottlenecks are still high but slowly easing.

New orders, a sign of future sales, also remained strong. Employment was mixed.

“Despite ongoing difficulties, most executives remained optimistic that the economy would improve later in the year. They expect omicron to fade like other coronavirus waves and anticipate congestion in supply lines to slowly clear up.

“Looking ahead: ‘Despite the survey signaling a disappointing start to the year, there are some encouraging signals for the near-term outlook,” said Chris Williamson, IHS Markit chief business economist.

Reader, Baer Markit128, added: “Not even mentioned by this author was that the manufacturing PMI came in at 55, which is above its long-term average..and EXPANDING. Services were clearly affected by people who were ill, but overall it wasn't a bad PMI report”.

The reader comment received 811 “Likes.”

So it seems that despite the recent jolt taken in the market, underlying expectations remain positive among serious investors and that the “correction” is a time for some sorting out of holdings. However, in this writer’s opinion, should there be a wake-up call at the top and Ron Klain really be on the way out, buying opportunities are enormous.

On another subject, an article  by Gregory S. Schneider and Laura Vozzella at the Washington Post further illustrate significant differences between the major party’s procedural attitudes. While leftist politicians generally employ campaign rhetoric as advertising and promotional pap, to gain audience attention, Conservative candidates actually intend to deliver as promised. Much like Trump’s staying true to his pledges infuriated his opposition, the author’s headline indicates a similar scenario in Virginia.

They write: “Va. Gov. Youngkin's assertive first week in office leaves Republicans jubilant, Democrats fuming.”

 “Youngkin stormed into Richmond with an assertion of executive power that has thrilled the GOP base but caught even some allies off guard, and he has made clear that he views his two-point margin of victory as a mandate for conservative change.

“The governor's office issued a formal list of legislative priorities Friday evening, identifying specific bills and budget amendments that he supports to carry out his promises. Those include measures to expand the state's Board of Elections and require a photo ID at the polls, as well as bills and budget items to suspend the gasoline tax, eliminate the grocery tax, boost the standard deduction and issue one-time tax rebates.

“It appears that Republicans running for office in other states are trying to latch onto Youngkin or some of the trappings of his campaign. In Illinois, for example, Gary Rabine, a businessman running for the GOP gubernatorial nomination, has plastered a photo of himself with Youngkin on a flier. A rival for the nomination, Republican state Sen. Darren Bailey, has begun sporting a vest embroidered with his name and campaign logo - much like Youngkin's signature campaign attire.”

Now, it might be said that Biden took a similar approach with immediate implementation of his own checklist upon assuming presidential office. However, the difference here is that both Trump and Youngkin instituted specific measures intended to improve constituent’s conditions. Biden paid no attention whatsoever to constituents at all, instead gathering everything possible bearing the name “Trump”  and blindly doing the opposite.

As performance shows to date, unfortunately for Biden, Trump was really good at what he did and how he did it, which can be quickly confirmed right now by simply buying a gallon of gas.

That’s it for today folks.

Adios