Mike’s Morning Brief: A fast-break rundown of what’s going on.
Market opens flattish after a surprising reversal yesterday which saw the North Korean induced overnight losses completely erased. We expected to see a raucous August. It sure has happened. This Market has held in remarkably well considering all of the issues going on, but we aren’t convinced it will last. The risks are becoming greater by the day in our estimation. The latest missile launched from North Korea is quite concerning on so many levels. It comes at a time when our nation has the appearance of vulnerability to our adversaries. We aren’t convinced the correction is over. This feels like new territory in which we operate, and the DOW and S&P are merely 2% off all-time highs. The tragedy along the Gulf Coast in Texas will take time and require substantial resources in recovery. While leaders in Washington argue, first responders and fellow Americans rushed to help their neighbors. That is indeed the American way. Hopefully, this will instill patriotism and collaboration in Washington to provide ample aid to southeast Texas and keep the government open. The US is on course to hit the debt ceiling next month, which means it could default in paying its bills and obligations. There was a government shutdown 4 years ago. It could happen again. The revised GDP report shows the US economy grew 3% last Qtr. That’s very solid. It also means the Fed just might raise rates again before year’s end. Crude prices continue to slip with refinery outage along the Gulf Coast as Permian supplies have nowhere to go. Gas prices are at 2 year highs. Gold spiked early yesterday but reversed course as stocks rallied. There is a bit of an inverse correlation between equities and the precious metal again, something important to pay attention to. The President heads to Missouri today with tax-reform on the agenda. No doubt, the topic of North Korea is trailing. Keep those belts buckled.
Have a great morning,
Mike Frazier
