Stop and Smell The Money
By John Persinos
The human brain is wired to give priority to bad news. When I was starting out as a punk kid in the newspaper business, we had an expression in the newsroom: If it bleeds, it leads.
Hence the gloom that pervades national polling this election year, when the truth is, the economy and stock market are performing well.
Federal Reserve Chief Jerome Powell put it best at his press conference last week: "This is a good situation. Let's be honest, this is a good economy."
We should believe him. Remember the old adage on Wall Street: Don't fight the Fed.
My faith in Powell increased when I learned that the Fed Head is a Deadhead. "I've been a Grateful Dead fan for 50 years," Powell recently admitted in public.
I'm a fan of the Grateful Dead myself. The fact that Powell (a registered Republican) has been spotted attending live concerts of the Grateful Dead gives him a more human dimension.
As investors, let's stop and smell the scarlet begonias…and the money.
Stocks have been hitting record highs, a surge largely driven by strong quarterly corporate earnings results. So far this earnings season, 77% of S&P 500 companies have surpassed earnings expectations, and 68% have beaten revenue forecasts.
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