On the last day of the busiest earnings week in a decade, here is a striking statistic from Goldman Sachs, showing just how dominant a handful of large cap companies have become in terms of both overall profitability and market impact:
Despite yesterday's whopping beats by Amazon and Google which sent the Nasdaq to new record highs after hours, and brought Jeff Bezos "this close" to overtaking Bill Gates as the world's richest man, this morning futures S&P futures are little changed ahead of the closely watched Q1 GDP report, European stocks and Asian equities are slightly lower, oil is higher after Russia's energy minister Novak said Russia had reached the 300kbpd oil cut per the OPEC pact, and the dollar was modestly in the red.
Yesterday's underwhelming unveiling of President Trump's Tax plan included a "one-time tax on trillions of dollars held overseas" presumably aimed at encouraging firms to onshore trilions of dollars of cash on the cheap - implicitly creating jobs and making America Great Again.
However, as The Congressional Research Service's detailed study of the last time this was enacted in 2004 shows, the program had little effect. The program was part of the American Jobs Creation Act.
Authored by Lance Roberts via RealInvestmentAdvice.com,
Just recently, Wealth Management had an interesting interview with Jeremy Grantham in which Jeremy suggests the “rules have changed” for value investors. To wit:
Trump 100, Margin Debt Stock Bubble and Gold