The Woke Street Journal
I am traveling Tuesday and Wednesday, and maybe Thursday
The big news of the week is the debate. My sense is that it could be one of the most pivotal debates in recent history. My sense also is that Trump has the most to lose. Expectations are so low for Biden all he has to do is stay awake. As the State of the Union showed he can rise to the occasion when necessary, maybe or maybe not helped by pharmaceuticals. ‘Keep The Bar Off The Floor’: Low Expectations Won’t Save Biden From Sleepy Debate Performance, Observers Say-Daily Caller
“I think our side has to make sure that we keep the bar off the floor because right now, merely showing up is a win [for Biden],” Sean Spicer, former White House press secretary and host of the Sean Spicer podcast, told the Daily Caller. “This is a guy who’s been in politics for 50 years, and we need to remind everybody, including journalists, that he prides himself on being a strong debater. And I actually think that, just like State of the Union, they will, they will do what’s necessary to get him ready and rested.”
Market
Two down days in a row and now below the 10 day. My sense is that there is a buying opportunity in here somewhere, just depends on your time frame. I’m currently long in my trend following model, my countertrend model, and it’s on watch to add if it moves down 2% or more today. Red again this morning.
The stock market is in its longest stretch without a 2% sell-off since the financial crisis-CNBC.com
The laggards continue to do better…
The question still is whether this rotation is now a two day wonder trade or the start of something bigger. My best guess is that you will see people buying the dip on the AI stuff. My watchlist coming into today includes AAPL, META, HPE, WDC, NVDA, MU, AVGO, and two industrial names that have AIness to them JCI and CARR. I will only be adding on dips. Friday is quarter end and PCE, we also have the Russell reconstitution. Interestingly, according to Mike O’Rourke the S&P 500’s P/E is now at a record 30% premium to the S&P 500 Equal Weight P/E. The prior high of 25% was during Covid. One would expect this to reverse.
Speaking of AAPL and META…
Meta and other companies developing generative AI are hoping to take advantage of Apple’s massive distribution through its iPhones—similar to what Apple offers with its App Store on the iPhone.
I think news like this could be huge. AI on it’s own is helpful, but my iPhone has my calendar, contacts, and all sorts of other stuff I use every day. AI integrated with that could be a game changer.
Of course don’t forget this issue….
AI IS ALREADY WREAKING HAVOC ON GLOBAL POWER SYSTEMS-Bloomberg
The rise of artificial intelligence is now turbocharging demand for bigger data centers, transforming the landscape even more and taxing the region’s energy grids.
If this is not just a two day wonder rotation, I trust the Dowish names more than small caps. You are seeing some interesting looking charts on some of the “stuff” stocks.
Maybe, at least until we see if they can break through the highs. Buy Freeport-McMoRan, Alcoa Stocks to Bet on Copper, Aluminum, Says Analyst-Barron’s
Not all though as coal, fertilizers, and lithium are all still getting crushed. Did pick up some ALB Friday.
And watching HCC today.
Just be careful, a lot of these ETFs suck. These Hot New Funds Are ‘Boomer Candy’ for Retirees-WSJ
The funds generate higher dividend income than is typical in a stock fund—sometimes 8% to 10%—but they also cap investor gains and carry chunky fees.
Among the other drawbacks: In most cases, the funds can be bought and sold any time but must be held for the full one-year outcome period to work as intended. An investor who sells early isn’t guaranteed full protection against losses and might miss out on some of the gains as well.
ESG
Where Are We Now: ESG Investing-Kutakrock
In November 2022 the Department of Labor (“DOL”) released a Final Rule permitting retirement plan fiduciaries to consider environmental, social, and governance (“ESG”) factors when selecting plan investments. Under the Final Rule, ESG factors may be considered in an investment’s risk-return analysis. The Final Rule became effective February 1, 2023, with certain proxy voting provisions becoming effective December 1, 2023.
The Final Rule reverses the prior 2020 rule that directed fiduciaries to select investments solely on financial factors.Until the fate of ESG litigation and the various cases has been resolved, fiduciaries must be aware of the potential risks when choosing to offer investments that have been selected based on ESG factors.
Interesting. My understanding, and I may be wrong here, is that palm oil is not a seed oil and doesn’t have the same health issues that seed oils have. Makes you wonder if the seed oil guys are behind any of this backlash. Is Palm Oil Off Limits for ESG Investors?-Morningstar
The SEC has become another tool in Biden’s arsenal as it becomes more and more woke-NY Post
Gensler and his minions have essentially canceled Clayton’s reforms and opened up the proxy process to any loopy left-wing proposal from political activists posing as shareholders.
These faux investors can now simply buy a few shares of stock (I am told they also borrow shares) to promote their political cause and, presto, they can put their proposal to a vote because the SEC allows them.
It costs companies and shareholders big bucks as they debate these idiotic whims, such as getting oil companies to stop drilling for oil, which would mean there would be no more oil companies.
BofA: ESG investing has lost its sheen-Investing.com
Analysts at BofA's Head of US Sustainability Research attribute the 2016-2021 ESG boom to three factors: a global regulatory push, particularly in Europe; rising investor demand, especially from millennials; and a surge in corporate ESG commitments.
However, BofA highlights a decline since the 2021 peak. Analysts blame regulations, accusations of greenwashing, energy security concerns, and US political resistance.
US ESG fund assets have shrunk from $17 trillion in 2020 to $8 trillion in 2022, with outflows continuing in 2024.
Retail investors going cold on woke ESG funds, survey says-This is Money
A poll of 276 financial advisers by investment firm Schroders reveals a diminishing appetite for 'sustainable investment solutions' from clients.
It showed that just 17 per cent of advisers had seen a small increase in demand for such products in recent months, down from 60 per cent in November 2021.
Woke Companies
Is Tractor Supply 'Woke'? Controversy & Boycott Calls Explained-The Direct
Right-wing activist Robby Starbuck lashed out at Tractor Supply and CEO Hal Lawton in a viral post on X (formerly Twitter), which has over 2.7 million views. Starbuck criticized the company for having customers' "hard-earned money spent on these woke priorities" such as LGBTQIA+ and related DEI initiatives
If it breaks the 10 day could be shortable. Watch the 50 day for support.
Disney’s Not So Secret Anti-White Agenda-Daily Wire
In this clip, Giordano appears to admit, on multiple occasions, that Disney discriminates against job applicants on the basis of their skin color and gender.
It was awful. ‘Doctor Who’ Scores Worst Ratings For Season Finale-Comic Book News
The new series of Doctor Who now also holds the record for the worst ratings for a season finale in the show’s entire 60-year history.
Border
The Illegal Immigrant Crime Wave-Erick Erickson
If ever there was an example of blatant media bias where a mainstream news outlet overtly ran interference for their preferred candidate, it would be today’s Associated Press story on the strangulation of a 12-year-old girl. The AP reports that Johan Jose Rangel Martinez and Franklin Jose Pena Ramos are both in custody and charged in the killing of 12-year-old Jocelyn Nungaray near her home in Houston. What the AP conveniently omits is that Martinez and Ramos are both illegal aliens from Venezuela who were allowed to remain in the US thanks to Biden’s border policy.
Politics
Gotta figure it will. If Joe comes out on fire like he was at the state of the union then all the people thinking of voting for him but worried about his age will feel much better. If he stumbles then we start to hear more and more about replacing him. Biden vs. Trump: Will the First 2024 Debate Jolt the Race? Is the election a choice between the two, or purely a referendum on the president?-WSJ
They’d all be in jail. Wales Moves Forward With Plan To Punish Politicians For Telling Lies-Zero Hedge
Former NY Governor Cuomo: Criminal Case And Civil Case Against Trump Should’ve ‘Never Been Brought’-Daily Wire
“You know what’s scary about this from my point of view?” Cuomo said. “The trials in New York. There’s Florida, Georgia, and two in New York. The two trials in New York: New Yorkers said, 66% said, the justice system is politicized. And there’s nobody in New York who likes Trump. And still, 66% said the justice system is politicized. That’s why I think he’s not paying the same price for these verdicts because they believe it is political. And you wanna talk about a threat to democracy? When you have this country believing you’re playing politics with the justice system, and you’re trying to put people in jail or convict them for political reasons, then we have a big problem.”
‘Smith Is Going To Have A Case’: Andy McCarthy Says We May Not Have Seen Last Of Trump Trials Before Election Day-Daily Caller
Special counsel Jack Smith could move to start trying former President Donald Trump in the 2020 election case prior to election day regardless of the outcome of a key forthcoming decision from the Supreme Court, former Assistant U.S. Attorney Andy McCarthy said Saturday.
Snopes Finally Corrects The Record On Notorious Trump Hoax — Seven Years Later-Daily Caller
Snopes, a fact-checking website, issued a correction for the infamous “very fine people” line Trump used, as well as had used against him — seven years later.
WWIII
Russia Blames U.S. for Deadly Ukraine Missile Strike on Crimean Beach-Breitbart
Everything Else
And they tell you obesity is genetic and has nothing to do with the crap you eat. We Bought This Bread in April. It Still Looks Fine. Culinary engineering has transformed this staple of the American diet, landing it in the middle of a debate over ultra-processed foods-WSJ
If your ideology is right then who needs to learn to read, that’s racist anyway. Meanwhile, kids in China are learning reading and math. California Will Teach Kids Anything Except How to Read Gender ideology, social justice and Marxist ideas are all welcome in the classroom. Phonics isn’t.-WSJ
Taken together, the California Legislature is happy to impose top-down mandates about curricular content and instructional “practices” in other content areas as long as they align with progressive pieties. Lawmakers will mandate that teachers educate children about the latest obsessions of critical race theory or gender ideology, but letter sounds or math facts are a bridge too far.
Roberts embodies the partnership between radical transgender ideologues and the medical establishment. A closer look at Robert’s effort to halt Texas’ ban on child sex changes indicates that the doctor formed an alliance with far-left ideologues and activist groups, many of which enjoy the backing of the pharmaceutical companies that stand to profit from transgenderism in the process.
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