The Champion Investor Weekly Intel Brief

The Champion Investor Weekly Intel Brief…

What has been, that will be; what has been done, that will be done. Nothing is new under the sun!

– Ecclesiastes 1:9

Politics

From the Washington Post… “Steve Bannon and his alt-right movement have helped accomplish something no one in a quarter-century has been able to do: Get a Democrat elected in the state of Alabama.”

As Warren Buffett says, “listening to the macro or market predictions of others is a waste of time.”

Listening to political forecasts or debates of others is a waste time too. But it will be interesting to see the implications of this.

Things change, people stay the same… The political climate fifty-eight years ago was not much different than today.

Front page news on the December 13th, 1949 Wall St. Journal featured the latest comments from Rep. Robert Rich (Republican in Pennsylvania).

From the WSJ… “Everyone in the federal government should be given mental test starting at the White House and going all the way down. We’ve got a lot of people in government who don’t know what it’s all about.”

Economy, Markets and Stocks

From USA Today… “Target ramps up delivery with $550M buy of Shipt… A move that will enable most of its customers to have groceries dropped right at their front door shortly after they place an order.”

Amazon is a hot-potato. Some investors think it can do no wrong. Some think it’s incredibly overpriced.

No doubt, Amazon has been great for consumers. The fierce competition lowers prices.

But I’m not a buyer.

It’s true. The big retailers were late to the game. It’s baffling really.

But they are fighting back hard. They finally “get it.”

Walmart just partnered with Google to go on the attack too.

As an investor, I’m more interested to see what companies like Target and Walmart look like in five years than Amazon.

Why not just mimic Amazon’s business model? Then what?

What if Walmart got into cloud services? What if all retailers partner with Google?

From the Omaha World-Herald… Janet Yellen said, “the U.S. economy is performing well. There’s less to lose sleep about now than has been true for quite some time.”

Red flag alert when you hear those words from the Fed Chair.

Look… The market could run higher for another year or two. But I don’t think the upside return is worth the risk.

Here’s the big elephant in the room…

The “mania.” Or the “madness of crowds.”

It’s nonexistent in the stock market. (Except cryptocurrencies.)

If mania kicks in, the markets could run much higher than the 10-20% that some Wall St. analysts predict from here.

It’s better to play it safe. There are assets out there that have gone down for several years that are more attractive.

Commodities included. They also tend to do well in late market cycles.

Remember, sell expensive and buy cheap.

Geopolitics

From the Omaha World-Herald… “Sweden said it was establishing the nation’s first new military regiment since World War II­­ – a unit of 350 soldiers that will be based on the Baltic Sea island of Gotland.”

Buried in the middle of the newspaper, this article was only five short paragraphs.

The Swedish Defense Minister said a “worsened security situation” in the region is the reason for doing it.

The “situation” is Russia. It’s ramped up military operations in the region.