As I have often observed, the majority of America’s household income flows to a handful of corporate cartels protected by the Central State. Most of the mortgage payments flow to the “too big to fail” banks. Most of the telecom payments flow to the few companies in the telecom cartel. Most of the energy money flow to the energy cartel. Most of the food budget go to the Big Ag cartel and the retail cartel. Most of the money spent on “entertainment” flows to the corporate media cartel, and so on.
Most of the global media is owned by 5 or 6 corporations. Most of the radio stations in the U.S. are owned by two corporations. This tremendous concentration of ownership of the nation’s assets gives these cartels immense political power, and so the Central State acts as “partner” to Corporate America, protecting the cartels from competition by insuring that regulations are used to stamp out or limit competitors. Corporate losses are shifted to the backs of the taxpayers, all in the name of the “common good.” Profits are private but losses are public–a peculiar definition of “common good.”
Corporate profits are now the bellwether, and the raison d’etre, of the entire U.S. economy. The central State and the Federal Reserve have a single domestic goal: boost the U.S. stock market, which they have made the proxy for the economy’s “health.” If corporate profits and the stock market are rising, then all is well. Or so we are constantly told by Fed and Treasury hacks, toadies and lackeys.
If The Pledge of Allegiance reflected reality, it should now read: I pledge allegiance to the profits of the Corporate States of America, and to the stock market for which it stands, one nation under the Federal Reserve, with taxation and serfdom for all.
We may be skating on very thin ice here, but the weight of the evidence still supports a weak bull case for the near to intermediate term. So I’m adding buy picks on the chart pick list and adjusting trailing stops to account for the risk.
These reports are not investment advice. They are for informational purposes, for a broad audience of investment and trading professionals, and other experienced investors and traders. Chart pick performance changes week to week and past performance may not indicate future results, as you know. Trading involves risk, and these reports assume that you understand those risks and manage them according to your tolerance.