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The Rolling Recession is coming. A slowdown here. A slowdown there. Some idiocy here. More idiocy there.

The Rolling Recession is coming.

A slowdown here. A slowdown there.

Some idiocy here. More idiocy there.

You won’t find a single cause like in previous recessions — the explosion of dot com stocks,  syndicates of worthless mortgages, progressive beggar-thy-neighbor tariff policies or even vastly overpriced tulip bulbs.

This time it’s rolling. It’s the accelerating tariff idiocies, it’s overpriced IPOs and tech stocks, it’s manufacturing breakdowns in Germany, and it’s ultra-low (stimulus-lacking) interest rates..

Above all, it’s the pig-headed, ego-driven, can’t-back-down, dig-their-feet-in nature of politicians like Trump of the U.S. and Xi of China.

We’re about to put 25% tariffs on scotch whiskey, French cheese and German cars. Why? Because the Europeans are subsidizing Airbus. They’ve been subsidizing Airbus for eons. Why the tariffs now? We stop Airbus subsidies now to help Boeing. But Boeing can’t even deliver their most important plane — the 737 Max. Boeing is definitely not going to benefit by a tax on French cheese — which we Americans will pay. (Personally I prefer American muenster cheese. But that’s another story.)

By the time this is all over — and the world economy will be in recession — China will be eating our lunch with their new Comac C919:

No one ever said competition hurt you.

What hurts you is how accurately you shoot yourself in your own feet.

Right now we’ve perfected the art.

Today, many of my beautiful stocks are losing four, five and six per cent.

My losses are across the board. Only one of my stocks are up today — American Tower.

With sanity, logic, and some decent thinking, we could all be living a happy life.

But it’s not going to happen any time soon.

First, let’s sacrifice our friends, the Kurds.

Favorite quote:

Want to learn more?

Watch this film.

Roy Cohn was Donald J. Trump’s mentor.

My portfolio lost 1.56% today. I am not a happy camper.

You will notice that Zoom Video (subject of yesterday’s blog) was down 4.42%. I bet it’s going even lower. So are ones with gigantic P/E ratios, like ServiceNow, Alteryx, Salesforce, Veeva Systems, and Amazon.

Wait there, Harry. most tech stocks have all got high P/Es — except for Apple which is “only” 19.25.

Susan and I are going to the ballet this evening. Those dancers perform better than my portfolio did today.

Tomorrow is another day. See you then. — Harry Newton