Diminishing group of stocks to buy. Diminishing group of countries to turn to.
That's what this decline is about, no place to go and fewer places to hide.
This morning I awoke to a tweet that said "cramer you were so bullish, now you are cautious?"
I was flabbergasted. I have said over and over again that things have gotten controversial, that the president is no longer taking his cue from the adulation of stockholders. With the tariffs he is taking the side of labor, something you don't expect from a Republican president, let alone this one. Then again, though, it was labor who elected him and he has to be true to his electorate.
But put aside tariffs for one second. We are losing the global synchronized economy. Before the day even began we got an HIS-Markit report that showed slowing business activity in the Euro zone. We got a survey out of Germany that showed reduced business confidence because of worries about a global trade war. That's on top of some negative news about Japanese industrial production.
Remember one of the most important props to this rally is that the growth isn't just in America, it is worldwide.
Now on top of that comes the tariffs that can only slow world trade even more.
Now maybe this is all temporary and economies will snap back. But right now we struggle to find all domestic companies we want because the most prominent one today is Darden (DRI) , the owner of Olive Garden, which announced that a popular Buy one Take one promotion is going away and the company is willing to handle a cut in sales short term to get away from promotions.
Boy, did the market hate that. Then AbbVie (ABBV) , the hottest drug stock, had some disappointing results on a drug for small cell lung cancer.
You lose the consumer, you lose health care and then the interest rates go down and you lose banks?
Just not a great day.