Tornado Alley (PROG)

[conix]

Hillary’s Socialist Pitch


By Charles Payne, CEO & Principal Analyst

8/11/2016 9:56 AM

It was another lackluster session for the market yesterday, which started on a slightly higher weakness in the U.S. dollar, but turned lower on a petroleum report that continues to illustrate the challenge of getting demand to overcome its overwhelming supply. So, investors moved back to the winning 2016 script of parking money into utilities and staples, and chasing stocks that are already enjoying a solid run.

On the New York Stock Exchange, 272 stocks hit new 52-week highs against only 7 hitting new lows. On the NASDAQ, 161 names closed at new highs against 35 at new lows. There were also more advancers than decliners on both exchanges.


Yesterday, there wasn’t anything special on the docket in terms of economic data or even corporate earnings. After the bell, Shake Shack (SHAK) posted results that beat on revenue, earnings, and management increased its full-year guidance as the stock is getting hammered. Same-store-sales were 4.5%, and Wall Street was looking for 5.4%. I think the initial reaction is overblown; there are growing concerns about consumers slipping back into their foxhole after a sharp increase in spending and credit card usage.

Today, we will see if the Street reacts to Hillary Clinton’s economic plan as this will be the biggest news barring any manufactured outrage or new email leaks.

I will say ahead of Hillary’s proposal that this race comes down to one party that believes it should take the leading role in taking of us from cradle to grave. And aims to limit wealth and upside potential as a way to making sure the rich aren’t too rich and the poor aren’t too poor.

Some would call that noble, but the poor would still be poor and everyone probably would be unsatisfied with lives unfulfilled by the inability to live. It’s not just a human need to take chances and risks, and to enjoy its rewards; it’s an instinct prevalent throughout the animal kingdom.

Still, opinions ebb and flow; it’s clear that westerners in general and Americans in particular are seeking a solution for the nagging growth problems that stretch back three or more decades. Overall, Americans are not fans of socialism, but a deeper look explains the success of Bernie Sanders and why we might hear the greatest pitch for wealth redistribution in the history of presidential elections.

Democrats overall have a more favorable view of socialism than capitalism.

See chart at link: http://www.wstreet.com/member/commentary.asp?con_id=38179&cid=26868


Gallup May 2016

When it comes to socialism, the most enthusiastic age group is also now the nation’s largest voting bloc.

See chart at link: http://www.wstreet.com/member/commentary.asp?con_id=38179&cid=26868

Oh, it’s going to be a fun day.