This week: short-term technicals, sentiment, cash allocations, earnings revisions, historical market patterns, seasonality, ESG flows, software investment
4. Cash Allocations: Ideas and charts are great.
When Wall Street chroniclers look back at these days trying to identify peak financial hornswoggle, ESG will have to be a serious contender for one of the most elegant, longest lasting and ultimately most dangerous and damaging as it is currently implemented.
_The ESG Mirage_ link:
Funny how quickly investors have forgotten to agonize that this is a mid-term election year. Forgotten, despite a steady diet of sage warnings and charts in late 2021 and early 2022 how this would hold down the S&P until the "political uncertainty" gets resolved, blah, blah, blah. Then the Macro hit the fan? The US of Bananas is quite possibly entering the first mid-term where the prior POTUS may well be charged with criminal acts, but, then again, the current wallflower running the DOJ may be afraid to bring charges before an election. A strange bit of reasoning in a country that has elections every two years on a national level and more frequently if state and local contests are counted. Justice delayed is justice ...? Yesterday the ex-Vice President held a rally in competition, and in parallel, to the ex-President that knowingly did his level best to send an angry mob with weapons to kill or maim his own VP. Not sure how politics works down in NZ, but, what I just described is a touch unhinged even for the US. Some on the security detail assigned to protect said VP apparently made calls to say goodbyes to their family and loved ones if the "capital visitors" found them. Not trying to be political, rather, I'm just setting the scene before positing that predicting what is going to happen in the markets in this nutcase of a republic for the near term, until a few 'issues' are resolved, might be getting increasingly futile?