Stock Journal (06.01.20)

The day opened in red but ended green for SPY. Many tech stocks and especially the leaders FAANG held up decent enough to bring indexes to close green. However the past weekend a lot of cities witness demonstrations and protests for the unfair treatment and death of George Floyd by a police officer. My personal opinion is that the officer was wrong in what he did and deserves to be sentenced for murder. However not all officers are like the one who killed Mr. Floyd.

The protests have turned into riots and looting overnight in many major cities and law enforcement have been actively present in force to control the initiators. Some cities have been overwhelmed to the point where national guards and military have been sent to assist in maintaining peace in the major cities.

I am focusing this post on the real economy rather than the ones in the stock market because this is effecting me on a personal level. There is no rhyme or good coming out of all these riots. People who were locked up for months without a job but are addicted to consumption is out in full force stealing what ever it is they are in need of. Nothing remotely essential. Flat screen televisions, game consoles, high end clothing and hand bags, watches and jewelry. Furthermore rioters out at night are doing physical damage to stores and small businesses. The very foundation of America is crumbing. Don't tell me in six months this will all be better when over the past three months things have gotten a lot worse than the beginning of the year.

The country wide closures from March that force so many to close down businesses are now facing another hurdle. The likelihood of losing their business to vandalism and looting. There is no positive to this, the damage to the real economy is catastrophic.

The protestors are out in force but in the mix are some very bad people who are out to destroy what is left of this country. Without small businesses there will be more unemployment and less real money spending. The flow of money can not be printed by the FED forever and in all likelihood the FED will still try to do so.

On this very night I personally am out of the markets and stand ready to just be an on looker. I am out flat mostly in cash and have 1 put contract on a certain high tech flyer, Zoom. My rant in this post is really to express what I feel about the economic sentiment the US is in. It is not in a healthy one and in all likelihood this recent turn of violence is going to slowdown if not stop the ever slow reopening and recovery of this country. That on top the of the country is still fighting a pandemic.

The saying goes markets are climbing the wall of worries, but the fact is since March to today the wall has only rose rather than plateau or drop. I don't doubt the market has more rise such as SPY could get up to 31-=315, but to say that it is worth that value at today's real economy is flat out a lie. How much more can the country take on before the markets align with reality?