Stocks rallied higher as technology shares exerted market leadership and oil prices fell as it looks increasingly like Iran is due for a change in management. At the close the Dow was up 82 points to 28,905 on heavy trading volume. Market indicators continue to show green.
Chris Low, Chief economist, head cook and bottle washer at FHN Financial gave his 2020 economic predictions this week. He is calling for US GDP growth to come in at 2.8% and inflation to be below 2%. While Chris does not give a market forecast he listed the odds of a recession in 2020 at 25% and at 30% in 2021. Meanwhile the White House is calling for GDP growth in 2020 to come in at somewhere between 2.5% to 3%. Steve Mnuchin noted that troubles with Boeing could affect the economy by upwards of a half of a percentage point since they are such a big manufacturer and exporter.
Hollywood is coming out with a new movie called "The Revenge of the Megalomaniac". Shares of Tesla shot to an all time high of over $524 per share up about 9% after Oppenheimer guru Colin "Cowbell" Rusch came out with a buy rating and upped his price target from below $400 to $612 per share. Cowbell said that Tesla has leadership in battery/powertrain design, roadmapping, ADAS fleet size, AI, energy independence and most of all "customer enthusiasm" which translates into a material operating advantage and increased market share as the EV space expands. Short sellers are in panic. Now if Tesla could just earn a profit we might feel better about the elevated share price level but hey....you can't have everything!