The PAW

Did you know why the Bull symbol is bullish and the Bear bearish?

The Bull pulls up his horns......the bear claws you down.

As Armstrong points out....the great shift of capital from the public sector to the private sector has begun. As stocks/ equity rises...bonds/ debt is getting crushed. Who would invest/ allocate  capital into a non profitable enterprise verses one that is? Bonds and cash lose money......well run companies make money. Now that the tax code has been solidified...trillions in cash will start to go to work again....stocks are under owned and bonds/ cash over owned..the lame duck congress has been neutered as has the executive suite.

The presidential election was determined by ID cards. The prez won every state that did not require a photo id and lost everyone that did, said Armstrong.

The door into the stock market is small....remember the available pool of stock to invest in shrinks each year....the tape is suggesting what has worked for the past few years and last year in particular will not work this year..

So Asia is less expensive than Europe....Oil and materials looks to break out. Bonds will look like/ act like an anchor over the side of a moving boat in a portfolio.

The first day of the new year stocks are up 2.54% and bonds down 1.24%!

Everything that happened over the weekend is inflationary...and now it is important to own companies that have inflation protected pricing powers.

 Ands there is only one asset class that benefits from inflation.....a very select group of well run over capitalized companies.

Danny Boy seen here likes to put his paw where it matters most.