With this week’s developments and the stock over $200, “in one sense I can say this is behind us,” Mr. Hastings said. “But it’s like a partially healed bone. It’s still quite fragile. Were we to make a similar mistake, we’d be right back in the penalty box. So we’re not really out of the woods. We’re growing and we’re making good progress, but we’re still not fully back to where we were.”
What advice does he offer? “Don’t get distracted by the shiny object,” he said. And if a crisis comes, “execute on the fundamentals.”
This is a pretty wide margin, and it made us think of this recent NFIB survey that showed that taxes and government red tape are the biggest problems facing small businesses today. Large caps are obviously more equipped to handle government requirements and red tape. Is this large-cap outperformance the new norm in the current economic environment?
This articles examines the following bearish developments that are currently taking place
Technical Intermarket Analysis Of Commodities, Bonds And Stocks Raises Bear Market Target For Stocks
Two giant markets, commodities and bonds, are in close agreement about the declining trend of nominal GDP growth. This is at variance with the message being sent from the U.S. stock market, which remains bullishly-configured and which benefits from fast nominal GDP growth.
Just like in 2012, the S&P 500 went on a tear in the first quarter this year, gaining just over 10%. The start of the second quarter has seen a 1% pullback, however. Typically when the market pulls back after experiencing a sharp rally, the stocks that went up the most during the good times go down the most on the downturn. That has been far from the case during this pullback.