I stringently disapprove of puns, but under great duress, I allowed my editor to put this one in the headline. The “bank” we’re looking at today isn’t Goldman Sachs (GS) or Bank of American (BAC) – it’s a very literal bank of rocks that prevents my back yard from eroding into the creek.
I love having this little stream in my yard – I grew up next to one like it, and it brings back fond memories of boyhood adventures. Someday, I hope my future grandkids will catch minnows and crawdads here too.
Unfortunately the good memories come with a downside – or slide. After about eight feet of erosion thanks to major storms through the years, we had to reinforce the bank with the large rip rap you see here – protecting the land leading up to the house.
That’s a great analogy for the markets right now.
Today, Trump met with North Korean leader, Kim Jong-un, in Singapore. In this first ever meeting between leaders of the United States and North Korea, Trump and Kim Jong-un signed a document announcing plans for denuclearization. While the meeting revealed no specific dates for this initiative, it was a significant milestone in international relations. And we can expect the market to react positively to the results of the meeting as well. As we witnessed when the summit was almost called off and the market dropped, investors react broadly to these issues. According to D.R., ten months ago we were all “scratching our heads” and worrying every time a nuclear test went off. In this live appearance on Varney & Co., D.R. talks about what this means for us on the home front, and he provides a little insight into the current state of the economy… Click here to watch…