Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Monday, the 1st of April.
Washington - We Have A Problem
That seems to be the secret message that Europe is sending to America. With little to no fanfare, it was announced last Friday (Good Friday) that Jack Lew, the newly appointed Treasury Secretary, will be heading to Europe for a series of meetings with finance ministers in early April. When I heard the news of Jack Lew's trip to Europe, it immediately threw up a red warning flag that things are not going well in Europe and they may need America's help, which is interesting as we are drowning in debt ourselves. When this news story broke, I was appearing on Fox Business News with Liz Claman.
Is This News Going To Make Everyone In Cyprus Happy? I Don't Think So
"A company owned by the in-laws of Cypriot President, Nicos Anastasiades, withdrew millions from Laiki Bank on March 12nd and 13th," according to an article published in Cypriot newspaper, Haravgi. It is rumored that the amount was 21 million Euros and it went to London. How would that news make you feel if you were a citizen of Cyprus?
Watch Today's Video Update Here
Tesla Turns In A Profit
Last month, a friend of mine and I drove down to Washington DC to test drive the new Tesla S electric car. We arrived at Tesla's newly appointed showroom and had our first glimpse of the all electric Tesla S car. The car is beautifully designed and the attention to detail is quite stunning. What I found really cool was the 17 inch interactive display in the center of the console. It is here on this interactive, intuitive screen were you manage all of the control for the car. We were told later that Apple engineers helped design the stunning user interface. The test-drive was nothing short of great, the pick up and the torque of the electric engine is amazing and I was quickly advised by the Tesla rep who went along with us on the test drive to watch my speed. Overall the car is world class and it's all electric.
Now what is interesting about the Tesla showroom, is they don't actually sell cars, they just take orders. One disappointment to me was the fact that they do not have a lease program in place at the moment. So Elon, if you are reading this, please launch a lease program as that could help get acceptance of electric cars on the fast track. After receiving several phone calls after my test drive wanting me to order the car, it is no surprise that Tesla reported its first ever profit in Q1.
Elon Musk is perhaps one of the most amazing, innovative and brightest minds on the planet who is a true visionary entrepreneur for championing space and the use of alternate energy to power our power hungry lifestyles. Hats off to you Elon.
We will be looking a Tesla (TSLA) stock today.
3 Stocks On The Move:
USG (USG)
DEERE (DE)
JUNIPER NETWORKS (JNPR)
Remember David Stockman?
He was the controversial OMB director when Ronald Reagan was president. He's out with a new book titled "The Great Deformation" which skewers pretty much everyone in Washington. Here's the gist of the book: (A)The Fed is creating a big bubble, and (B) We can no longer afford any more stimulus.
My favorite David Stockman quote actually occurred in 1981, when he stated during his first year on the job, "None of us really understands what's going on with all these numbers." David, truer words were never spoken. I would almost guarantee that nobody in Washington, Democrats or Republicans, have any clue about the numbers.
Watch Today's Video Update Here
POTENTIAL CHAOS AHEAD
May 19th – Debt Ceiling Suspension Expire
Have a great trading day,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.
