The market likes President-Elect Joe Biden’s selection of Janet Yellen to serve as Treasury Secretary. Many Wall Streeters feared that Biden would appoint...
Dear clients, family and friends,
As a follow-up to last Monday’s email, I want to thank the dozens of people who wrote back with praise and thanks. Last week saw a 15% drop in the S&P 500. Meanwhile, our SPXS position shot up almost 45% for the week. The position currently enjoys a profit of 63% in just 17 days.
Also, as I write this, it appears that the Administration and Congress will reach a trillion-dollar stimulus package before the end of the day. We have certainly been tricked and disappointed in the past, but this time let’s hope they have put politics aside and do the right thing for our country.
I have made the difficult but prudent decision to exit our SPXS position and protect our epic profit of 63%. Remember the old saying, “Pigs get fat, hogs get slaughtered.’’ It’s in play right here, right now.
Tomorrow brings us another day, and our process will allow us to make the right decision. This may be just a few days of hiatus of green over red, and then back to more sell off.
Right now we need to be praying for the millions of Americans in the travel, hotel, restaurant, retail, manufacturing, and service sectors who have lost their jobs—many may be permanent. Most of them were living “paycheck to paycheck” before the Coronavirus reared its ugly head. Now I shudder to imagine the hardships they face.
All of my comments from last Monday remain in play. Federal money will help dislocated employees and small businesses in the short term. But the damage to GDP and consumer confidence will require months to repair. You know anybody looking to buy a restaurant or a hotel? I don’t think so.
Pray for our great country. Worst case scenario is this is a replay of the 1918/1919 Spanish flu.
Please write back or call me to talk. I am sequestered at home as is most of our staff. I have nothing to do but send emails and speak with all of you!
Seriously, don’t hesitate to call me. I am here for YOU.
Jack 240 401 2355
Jack Reutemann, Jr
Research Financial Strategies
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