Stock Market More Treats Than Tricks In October

Stock Market More Treats Than Tricks In October

By Bruce Cook

Turning the calendar from October to November brought more than trick-or-treaters, pumpkins, and leaves to rake. It also brought a wave of important economic updates that delivered more treats than tricks and helped the stock markets reach new highs.

Those new highs may be causing you to feel a bit wary, however, wondering if the end is nearing for what is now the longest bull market ever recorded. Should new highs be feared or embraced? Since 1980 the S&P 500 Index historically has generated above-average returns one year after reaching a new high. New highs have been a normal by-product of bull markets, and we should expect to see more.

There are several reasons to expect this bull market may deliver more new highs in the months ahead. Overall, the U.S. economy remains on solid ground with no sign of imminent recession. Gross domestic product for the third quarter came in better than expected despite businesses’ weak capital investment related to the U.S.-China trade conflict. The consumer remains the anchor of the U.S. economy, as shown in recent strong consumer spending data. Job growth in October was solid, even when considering the General Motors strike (which is over), and wages continued to rise. 

Recent trade headlines also reflect encouraging progress. President Trump and China President Xi likely will sign a preliminary trade agreement within the next month or so. The most contentious issues will need to be worked out in future negotiations, but any de-escalation of the current trade tensions will be welcome. Resolving the trade dispute may encourage companies to invest more, which could drive stronger economic growth and corporate profits and help push stocks higher.

Doing its part, the Federal Reserve (Fed) gave investors what they were hoping for and cut interest rates for the third time this year. Stocks historically have responded well one year after cuts that were also characterized as a “gradual mid-cycle rate adjustment.”

We are entering what historically has been the best performing six months of the year for stocks. When we add that positive seasonal factor to the overall good health of the U.S. economy, support from the Fed, and progress on a trade agreement, it appears this bull market may have more left in the tank. At the same time, we cannot dismiss potential risks to markets, most notably the possible unraveling of the U.S.-China trade pact, lackluster economic growth in Europe and Japan, stalled corporate profit growth, and the potentially contentious upcoming U.S. presidential election campaign. After a relatively calm and steady stock market advance this year, a pickup in market volatility would be totally normal.

We should continue to watch for signs of excesses in the economy that could lead to a recession and bring this record bull market to an end. For now, there don’t appear to be any worrisome cracks in a strong economic foundation, and the backdrop for stocks appears to remain favorable. 

Bruce R. Cooke is a Havertown based CFP with LPL Financial.

Stock Market More Treats Than Tricks In October

Lumber Mills Return To USA

Lumber Mills Return To USA
Thank you, Mr. President

Lumber Mills Return To USA — The Wall Street Journal reported Oct. 25 that lumber mills are closing in British Columbia and opening in the USA.

Mills with capacity to produce 5.5 billion board feet a year are being built in the South, as well as facilities that turn trees into pulp for paper and cardboard, according to Weyerhaeuser Chief Executive Devin Stockfish.

Yes, that’s winning. Tariffs work.

Lumber Mills Return To USA

GM Installing Google Starting 2021

GM Installing Google Starting 2021 — Motorists will soon be able to count on a Silicon Valley big brother to watch them as they drive. Google is putting its apps into the touch-screen displays of General Motors cars starting in 2021.

Drivers will be able to access Google Maps; the voice-activated assistant; Google Play app store, and a multimedia multimedia app directly from the dashboard.

Hey, did you see where Google got the big brother types, 800,000 more votes in 2018?

Looks like GM is one more thing to avoid. Have you switched to DuckDuckGo yet?

GM Taps Google For Car Apps
GM Installing Google Starting 2021

Media Township T J Maxx Annoys Middletowners

Media Township T J Maxx — The sign has been behind the counter at T. J. Maxx at the Promenade at Granite Run since it opened 11 months ago and thanks customers for “shopping media township t.j’s” much to the annoyance of residents of Middletown Township as that is where store is located.

Media Township T J Maxx Annoys Middletowners

The corporate honchos dismissed complaints about it .

There is no such place as Media Township. There is a Media Borough which is the county seat but that’s two miles from Granite Run which is in Middletown Township

If the sign merely said Media they might have gotten away with it since that is the store’s mailing address and the Media postal area includes many municipalities including much of Middletown.

Adding township, though, was a big no no.

T. J. Maxx bigwigs, change the sign now. Making a mistake is one thing, willful stupidity, however, never helps the bottom line.

Media Township T J Maxx Annoys Middletowners

Inverted Yield Curve Explained

So what is this inverted yield curve everyone keeps talking about? Financial advisor extraordinaire Bruce Cooke, whose office is on Manoa Road in Havertown, provides this educational and easy to understand link.

Yes, an inverted yield curve is not a good thing. Yes, we blame the Democrats. If Nancy Pelosi puts country ahead of partisan posturing and gets the United States–Mexico–Canada Agreement (USMCA) passed we suspect the yield curve might start looking a little more normal despite the problems in Europe and China.

You hear that Congresswoman Mary Gay Scanlon (D-Pa5)? Of course not. You’re OK with suffering as long as you think it helps your side. At least we believe so. Prove us wrong and back this thing.

Yield Curve Explained
Inverted Yield Curve Explained

Craftsmen Production Returning To US

Craftsmen Production Returning To US — The business section of yesterday’s (May 17) The Wall Street Journal had some good news we haven’t seen mentioned in other outlets.

Stanley Black & Decker Inc. is moving its production of Craftsmen wrenches from China to Fort Worth, Texas. It will employ 500 persons to make 10 million wrenches and 50 million sockets annually. Robots and fast forger presses will boost output about 25 percent above the older machines they used in the PRC.

Craftsmen Production Returning To US
Craftsmen Production Returning To US Power And Nuclear Plants

GM Building EV In U.S. Now

GM Building EV In U.S. Now — A story that won’t be played up on ABCCNNBCBSNYTWAPO is the recent declaration that General Motors will build its new electric car in Orion, Mich. rather than out-of-country as had been planned.

GM Building EV In U.S. Now -- A story that won't be played up on ABCCNNBCBSNYTWAPO is the recent declaration that General Motors will build its new electric car in Orion, Mich. rather than out-of-country as had been planned.
A March 25 screen shot of recent stories in the Wall Street Journal concerning auto manufacturing expansion.

GM will invest $300 million in the plant. The reason for the switch given by GM CEO Mary Barra is President Trump’s pledge to end NAFTA and replace it with the still-to-be-ratified U.S.-Mexico-Canada Trade Agreement.

GM Building EV In U.S. Now

In-Q-Tel Is CIA Venture Fund back on Jan. 12 carried a fascinating article on In-Q-Tel, an influential venture fund started in 1999 that sits on many Wall Street boards. It was instrumental in starting Google and Facebook.

The Q in In-Q-Tel

It’s funded by the CIA.

Was the tax appropriation for this commercial subsidy and market involvement — wonder how MySpace and AltaVista feel — spelled out by Congress?

Doubt it. Did you know that our government has apparently spent $21 trillion off the books since 1998?

For what it’s worth, that’s about what our national debt is for which we are paying $365 billion in interest, expected to increase to $447 billion next year.

We’re just reporting this to make you feel warm and comfortable that you have a Big Brother looking out for you.

The Q in In-Q-Tel  is an intentional reference to Q, the fictional inventor who supplies technology to James Bond.

Culture Of Life Fashion Statement

Culture Of Life Fashion Statement — Journalist, political pontributor and now Mommy Activist Carla D’Addesi and her daughters were tired of feeling excluded from the Fashion industry due to harmful styles, anti-life and even messaging that is anti-women.

“Many brands proudly support anti-family and anti-life organizations with their profits and we just felt guilty spending our money on apparel that went against our core values,” said Mrs. D’Addesi. “My daughters and I joked that we should either start our own Fashion Line or begin sewing our own clothes.”

COL1972 was created around the dinner table one evening. COL1972 stands for Culture of Life and the year 1972, the last year that we enjoyed a culture of life in the USA.

“1973 is the year that our Supreme Court chose that our tiniest people would not have the right to life,” Mrs. D’Addesi said.

Since 1973, 60 million people have not had the right to life.

“We dreamed of a Fashion brand that celebrated all life! Life is AMAZING would be the message on every item and reflected in every insta post and twitter tweet…because LIFE really is glamorous and is ALWAYS in STYLE,” she said.

This is a brand that is Dad approved but also kid approved! This is guilt-free shopping that is healthy for the mind, body and soul!

Interesting that Celine Dion, also launched a Fashion line about the same time as COL1972. Dion’s messaging is all black, dark and apparel is covered with horns and eyes for our children. Clearly, one Fashion brand is harmful to our youth, families and culture…while the other is encouraging! Happy! Fun!

COL1972 is filling a gap in our Fashion industry.

COL1972 Foundation is the charitable arm of the brand and gives back to organizations that Celebrate all Life. COL1972 is sponsoring the March for Life and the Students for Life annual Conference this January.

The brand has been well received. Upon launching Jan. 1, many COL1972 items are already sold out.

“We hope to create a tribe! A posse! A community! We are risk takers and readers. We are artist and thinkers. We are dreamers and influencers. All united by the belief that every LIFE is priceless,” said Mrs. D’Addesi.

COL1972 products can be found here. AlsoFollow COL1972 on twitter, FB, Insta and YouTube.

Follow Carla D’Addesi @CarlaDaddesi on FB, twitter and

Culture Of Life Fashion Statement

Nationalist Plus Socialist Equals Nazi

Nationalist Plus Socialist Equals Nazi — Children, remember: Nationalist is only Nazi when you add Socialist.

Also remember, the old media tell lies.

Hey did you know that Abraham Lincoln supported high tariffs? He signed bills that led to placing our tariffs at 38 percent and 48 percent. This tariff scheduled remained in effect until 1913 during which time America became the greatest economic power in history.

(And we didn’t have an income tax.)

Nationalist Plus Socialist Equals Nazi

Nationalist Plus Socialist Equals Nazi
No, no podemos con el socialismo