No Recession in Sight?

Greg Guenthner coming to you from Baltimore, MD…

Greg GuenthnerAs the major averages log their third straight week of losses, White House economic advisor Larry Kudlow says he sees no recession on the horizon.

Yes, the same Larry Kudlow who released a bizarre hype video declaring the administration is “killing it on the economy” just before the market suffered its first scorching selloff on the year now says everything looks just peachy.

Here’s the full account of Kudlow’s weekend talk show appearance via the NY Post:

“I don’t see a recession at all,” Kudlow told fill-in host Dana Perino on “Fox News Sunday.”

Americans, he said, “should not be afraid of optimism,” saying the “Trump pro-growth program” is succeeding.

“What’s wrong with a little optimism?” Kudlow added

Kudlow wasn’t the only optimistic Trump minion hitting the Sunday talk show circuit. Peter Navarro has also spent considerable energy praising the president’s economic prowess, claiming in a Sunday CNN appearance that Chinese tariffs haven’t hurt any Americans.

You don’t need an advanced degree in economics to see that Trump is quite concerned about the possibility of a recession creeping into the picture before his 2020 reelection bid. After all, Trump has put virtually all his eggs in the Dow’s basket. If the stock market continues to slide, his shot at a second term also fades.

That’s probably why Trump is maniacally tweeting trade war nonsense right now. Sunday’s tweetstorm included jabs at the media over alleged smears and vague claims that he’s making headway on trade talks.

trump

Unfortunately, I’m sticking with my hunch that the trade war fiasco is far from over. After all, Trump has continued to kick the can on trade since he started the whole mess a couple of years ago.

We’ve heard all this before…

hipster

Since we’re talking all things Trump this morning, should I buy a new pair of snowshoes in anticipation of the impending annexation of Greenland?

Here’s a quirky story that slipped through the cracks late last week: Does Donald Trump really want to buy Greenland?

Next to the trade war and saving the global economy from ruin, buying Greenland is apparently on the top of the President’s mind lately.

According to several sources, Trump has asked about buying the island several times recently. Staffers and lawmakers generally aren’t confident as to why. After all, “let’s buy Greenland” isn’t exactly a topic that comes up too often these days…

While the U.S. military maintains bases on the island, according to The Wall Street Journal, that fact alone probably doesn’t justify forking over the cash.

Interestingly, Trump’s repeated inquiries do not mark the first time Uncle Sam has attempted to purchase Greenland. The U.S. has floated its interest to buy the icy country on two other occaisions: just after World War II and way back in 1867.

Greenland, which remains the property of Denmark, responded in — you guessed it — a tweet:

greenland

Apparently, Greenland is open for business, but is not for sale right now. I supposed that clears things up.

Before we move on, did you notice the pattern emerging in today’s top stories? That’s right — they all involve Twitter Inc. (NYSE:TWTR)

Twitter isn’t just another open trade in our model portfolio. It’s also quickly establishing itself as the go-to source for market-moving news. That’s why I’ve spent the better part of the past two years learning how to use this information to generate outsized trading gains.

My publisher took some time to get on camera and explain everything. Click here right away to see what’s happening.

Finally, let’s catch up on the GE whistleblower controversy.

Late last week, a whistleblower by the name of Harry Markopolos accused General Electric Co. (NYSE:GE) of some shady financial dealings. He even went as far as calling GE the next Enron.

That’s a bold claim. And analysts still aren’t exactly sure the accusations have any merit, according to CNBC. But that hasn’t stopped GE shares from getting whipsawed by some violent action over the past couple trading sessions.

GE

Of course, GE shares have remained locked in a steady downtrend for some time. Over the past three years, the stock is down nearly 70%. There was no reason to buy this stock before Markopolos’ accusations — and there’s no reason to try to buy shares now, either.

Sincerely,

Greg Guenthner

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