While stocks are melting up and the dollar is fading, below is a look at "the madness of people."

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"I can calculate the motions of heavenly bodies, but non the madness of people." — Sir Isaac Newton

Past Jeffrey Saut, Chief Investment Strategist at Raymond James
 Feb sixteen( King World News) – Samuel Chong writes:

"A well-known physicist and scientist in England, Sir Isaac Newton was too an investor, though non a not bad ane.  A piddling known fact most Isaac Newton is that he lost 20,000 pounds ($2.72 meg in today's coin) due to his speculation in the Due south Sea Company stock in the 1720s during the bubble.  "I tin calculate the motions of heavenly bodies, only not the madness of people." is the quote on his abilities of adding afterwards the loss of his investment.  It is not articulate whether his loss on the stock market place was a budgetary loss or an opportunity cost loss."

Jeffrey Saut continues: Indeed, "I tin calculate the motions of heavenly bodies, simply not the madness of people," and, that's kind of how I feel now that the S&P 500 (SPX/2349.25) has overrun my short-term model's maximum price objective of 2330, as well as exceeded my late-January/early on-February downside "window of vulnerability" call. Equally stated, "Our models are non always right, but they are right a lot more than they are wrong." In this case it appears that, again every bit stated, "It has go dangerous to forecast beyond a few hours because a DJT tweet or pronouncement can occur at whatever moment."…

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Plainly, investors' enthusiasm for lower corporate taxes, reduced regulation, warmer relations with Russia, China, Nippon, etc., are currently "Trumping" the models that have served usa so well for decades. Nosotros do observe it interesting, even so, that the White Business firm is "driving" the equity markets and not the Fed, which is a huge change from the past 2 decades. Conspicuously Ms. Yellen's comments about excluding smaller banks from certain regulations lit a burn under many of the financial stocks on Tuesday, which carried the indices out to another new all-fourth dimension loftier.

And and so there was this kind e-mail from i of our financial advisors on Tuesday:

"Unprecedented times for sure, a president that the world has non experienced, at least in my memory, and the street of dreams keeps playing out that dream.  The 2330 level was patently broken today with an afternoon reversal. I have been cautious this year with new majuscule and my gut still tells me that stance is warranted.  That beingness said, what is going to be a catalyst for a pull back?  Hard to imagine that everyone believes Trump's policies will play out exactly as he thinks, and so I would promise traders have already taken a more moderate opinion into business relationship and are investing appropriately.  Feb typically is a negative month for new presidents coming into office; will Trump exist one of those presidents that breaks that tendency? What say you lot good sage, yous have always been more right than wrong."

Quite frankly, I am rarely at a loss for a directional stance on the disinterestedness markets, simply I must admit given the current environment I am somewhat confused. I mean stocks are ignoring the raging war between DJT and the U.South. intel community, the CPI surged 0.6% in January (see nautical chart below).

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Information technology is pretty clear the Fed is backside the curve and history suggests in one case that happens it is pretty tough to catch upward, industrial production declined past 0.3% in January (0.0% estimate), Americans are more stressed than ever according to a recent written report (stressed), the NASDAQ is budgeted its nigh overbought level in history, the SPX has not experienced a 1% daily refuse since Oct 11, 2016, we have bureaucrats (who nobody elected) seeking to undermine elected representatives . . . well, you go the idea. Indeed, "I can calculate the motions of heavenly bodies, simply not the madness of people."… KWN has just released the remarkable sound interview with Michael Belkin, the man who counsels the biggest coin on the planet, from the largest sovereign wealth funds in the world to pinnacle common funds, alimony funds, hedge funds, and private wealth in N America, Europe, Latin America and Asia, and you can listen to it by CLICKING HERE OR ON THE Prototype BELOW.

***ALSO JUST RELEASED:Look At This Stunning Chart Of The Manic Behavior In Stock Markets CLICK HERE.

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