Once again, Dow 20,000 remained out of reach as the index began the session on Monday with two big names, Coca-Cola (KO) and Procter & Gamble (PG), getting a “Sell” rating from Goldman Sachs (GS). While blue chips struggled, the NASDAQ rallied for the fifth consecutive session, closing at an all-time high. Initially, tech names struggled during the post-election period, but have come on strong. Biotechnology has been the real star.
The Biotechnology Index has climbed more than seven percent in the past week. I have been saying all along that it has the potential to rally a lot higher on demand, FDA news, and acquisitions.
As for the big board, the absence of big-time financial data and corporate earnings means that it might take upgrades to nudge it past 20,000.
As for all the other indices, this is also part of profit-taking that I have mentioned that was delayed because of taxes and a dollop of anxiety.
The Business of America is Business
After all, the chief business of the American people is business. They are profoundly concerned with producing, buying, selling, investing and prospering in the world. I am strongly of the opinion that the great majority of people will always find these the moving impulses of our life.
-Calvin Coolidge
It’s unlikely “Silent Cal” would have been active on Twitter, but President Coolidge carried on the focus of business and growing America from his predecessor Harding, resulting in the roaring 20s. (I know cynics will point to how the Roaring 20s ended, but those mistakes don’t have to be made. Meanwhile, the kind of groundswell that gets an entire nation on board is bubbling in America, and others around the world are taking notice.)
The Trump Tower lobby continues to be the place to be seen, especially if you are a mover and shaker. Monday saw Jack Ma and Bernard Arnault, perhaps the richest man in China and in France, make the trek, respectively.
They joined Masayoshi Son, the second richest man in Japan, and Carlos Slim, the richest man in Mexico; they have already made the move to see the President-elect.
- $21 billion: Ma
- $12 billion: Son
- $34 billion: Arnault
- $49 billion: Slim
$142.0 billion Total
These billionaires are de facto business ambassadors for their respective countries. Another critical point to understand is that they all built their business empires, and have a first-hand understanding of risk-taking and success that only a few in the world understand.
For all the concerns about a trade war, we have Son pledging to invest in the U.S. and to create 50,000 jobs. Ma is talking about helping with the creation of 1 million jobs in the heartland of the United States as well, along with Arnault who hinted at opening a factory in North Carolina.
While much has been made of the pros and cons about Trump’s cabinet, there is a distinct difference between movers and shakers that create jobs and empires from politicians. Today begins the confirmation period for Trump’s cabinet appointees, and Democrats are said to be most focused on businessmen and Senator Jeff Sessions.
It’s political posturing, which is too bad when real job creation is happening and the new team hasn’t taken office yet.
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