June 17, 2013 Update

DJIA:15,070 S&P 500:1,626 NASDAQ:3,423 Gold:$1,385 Oil:$98.59 EURO:$1.3337 YEN:94.89

Reality vs. Perception: Let Your Reality be Real

The way in which many of us choose to perceive our existence is vastly different from our actual reality. I believe that the disconnect between perception and truth is the root of the majority of mankind’s difficulties, and the cause of poor investments. Be honest, how many of your own problems have you personally created yourself? Did you buy into the 2008 credit bubble? Are you scared to quit your job and start a new career? Are you bullish on an investment you know is likely faulty simply because it’s your own idea? While admitting defeat and walking away may be the single most emotionally damaging experience, embracing reality and change is incredibly more power and productive. Millions of Americans continue to spend more than they have because they perceive their needs as greater than they actually are. Imagine how much less debt there would be if consumers did not spend recklessly due to the realization that they could not afford it. For me, there is little doubt that emotions are the amnesia of reality. Once you can identify emotional thinking, navigating the markets becomes more technical, your reality becomes real, and your mind becomes free. 

Domestic News

• Market Update Futures are ripping from investor confidence in the Fed that an early announcement of QE tapering will not be discussed during this week’s FOMC meeting after Friday’s stagnant economic data.
• Auto companies are facing increased regulatory pressure to sell zero-emission cars, which is displeasing consumers as the laws will result in higher prices. The government intervention in the auto industry is distorting markets. 

International Updates

Asia

• Market Update Markets are trading up as a result of the upcoming FOMC meeting. Japanese equities rose sharply as the Yen retreated and investors buyback the recent sell-off. 
• The Reserve Bank of India has kept its benchmark interest rate at 7.25%, despite decreasing inflation and stagnant growth. 

Europe

• Market Update Trading in the green ahead of FOMC with oil firms leading the rally in FTSE 100 after upgrade.  

Corporate

• United Continental (UAL) lost $723M, largely due to canceled and delayed flights, after the 2010 merger. CEO Jeff Smisek believes UAL’s future will be less turbulent as they continue to  increase market share in the friendly skies. 
• Airbus (EADSF.PK) is expected to receive an order for 50 jets from AIG unit International Lease Finance in a deal valued at $5B at list prices. 
• The French government has told its’ three board members on France Telecom (FTE) to support current CEO, who is under investigation for an alleged €285M government arbitration payout to a businessman in 2008, at the directors’ meeting today.

Commodities

• Gold is rallying due to the Federal Reserve’s inaction. 
• Crude oil futures are trading down after Syria-spurred surge.