It always amazes me how when accounting issues come up how they do not seem to make sense to me. True I am skeptical which I think is a good trait always looking how your going to be wrong but this issue in the US Dollar you may have heard had all the multi-national’s writing down tax avoiding value of the dollar going up.
I’m sure you remember just about a month ago all the US Corporations were decrying the high value of the dollar.
Here is a chart and what I want to point out is the dollar topped out over a year ago. This means that the dollar has really gone sideways for a year yet all we have heard up until we have recently made a 5 month low in the dollar has been CEO’s writing down what has not gone down according to my chart.
How can they write down something that has not gone down?
So what gives? What gives is this mentality by CEO’s to reduce earnings by hook or by crook? We don’t have to look very far today for the crook. It is a stock (VRX Valeant today) I have thought was an accounting fraud since I believe last fall 2015 when the company charges sky-high prices on RX pills and owns the firm, but really doesn’t, denies it and all that crap that you sell first and ask questions later in my book. This reminds me of the same but also the fact that no big corporations domicile in the US anymore. AVON no longer American. Trump called out Pfiser for this is his speech and he is 100% correct along with my accountant and the accountant at my club. The financial condition of this country is on a crash course with the .1%-er’s not contributing much of anything to the good of Society (tax revenue) but those are commodity investment type reasons to address things like this.
Here is a chart of today’s action in the bond market. If you do not know what these patterns denoted by the diamonds might I suggest for you professional traders that you find out. The patterns are in ever market. We don’t always know when they are going to happen but staying out of the way in itself is like not becoming Goldman’s hood ornament which is a good thing.
I think you want to be a skeptic so you can approach the equation as what is wrong, or right.
Not to much to say here otherwise as we have come off some beaten down levels in everything from Tesla to crude oil.
If I can be of any assistance to any of you traders I am here to help. I like to think I decipher noise from opportunity for you..