It is absolutely refreshing to see the American people have had enough with Hollyweird.
Last Friday, Kevin Spacey’s latest film, “Billionaire Boys Club,” opened in 10 theaters and made $126 gross. The film pulled in an estimated $425 for the entire weekend, according to an analyst’s estimate. The hot spot for revenue was Middletown, Conn with a top gross of $45.
The audacity of Hollywood to release a movie featuring Spacey, who has been accused of sexual assault with a minor as well as sexual assault, is beyond comprehension.
Spacey was kicked off of the Netflix drama “House of Cards” last year after the accusations came to light during the #MeToo revelations. Ironically after the long-rumored allegations became public, the actor came out and admitted he was gay, which did nothing more than anger many by equating the pedophilia charge with homosexuality.
Hollywood must believe Americans have a short attention span and that by releasing this movie it would be an attempt to normalize his abhorrent behavior.
Well there is not clearer answer to that question than roughly 12 people perhaps 13 paying to see this movie on Friday. Hell I get more views on this blog in the first 5 minutes of posting.
Silicon Valley could do nothing wrong for the last decade.
New technology, products, apps and personalities took shares to all-time highs. The FAANG stocks (Facebook, Apple, Amazon, Netflix and Google) forced the Nasdaq to blow past its Internet Bubble highs. (BTW, not a fan of Alphabet rebranding).
The few equity floor traders left at the NYSE — you know him from their standing around the kiosks in the live shots on the financial shows during the day — have their Dow 22K at the ready.
The recent moves from the FAANG stocks to the Dow 30 blue chips has to be based on valuations, since Facebook, Apple, Amazon, Netflix and Google have reached astoundingly high price/earnings ratios die to the crowded trade.
Smart money is moving into more traditional tangible manufacturing stocks to offset the surprises like Amazon’s recent reporting. CEO Jeff Bezos beat on the revenue, but tanked on the bottom line due to increased spending.
Just not enough discipline, when your P/E ratio is approaching 250 and the S&P 500 ratio is around 25.
While only Apple +28% and Microsoft +17% are in the Dow 30, Caterpillar and Boeing are having their day in the sun being up 23% and 56% this year respectfully.
So break out the party hats and streamers as the new bosses, same as the old bosses push their way back into the spotlight.
As we begin the second half of 2017 astronomically , let’s look how the stock markets did so far.
The Dow Jones industrial average is up 8.3%.
The S&P 500 rose 8.7%
The Nasdaq soared 15.9%
On the backs of FAANG stocks, the tech index is a very crowded trade. The ironic part of the gains in Facebook, Apple, Amazon, Netflix and Google is held by “hedge funds” and foreign central banks.
Certainly there are losers in the tech sector during this run up in prices. Twitter and Snap are two of the once promising darlings that failed to attract investor interest.
Now why would hedgies be in these stocks, unless the hedge is not to show negative returns on their other bets.
As a point of comparison bitcoin is up roughly 64% for the first half of 2017.
Many market pros are saying this could be the top for these stocks. That makes sense from the strong first half returns, but my question is if this is true, then where will capital go to find the next crowded trade? Because that’s where you make money.