Stocks continue to trade in wild fashion as the Dow opened positive but then went down over 300 points before finishing with a flurry up 330 points to close at 24,190. Trading volume was high. For the week the Dow was down 4.5% and is now 10% off its high set on Jan 26th.
Brian Wesbury, chief economist at First Trust and honorary member of the Westport Mafia, posted his thoughts today on his blog about this market correction being more emotional and not fundamental. He then give some compelling data points and brings out the difference in philosophy between those who fear inflation and those who see it as a function of growth. You can read it on our Faceplant page here. It is well worth it.
Canadian based Brookfield Infrastructure reported a 45% jump in revenue and a 16% increase in profits. The company increased its dividend by 8% as funds from operations increased 14%. During 2017 Brookfield purchased a gas transmission business in Brazil, a distributed energy business in the US and a water company in Peru. I wonder if they bought all this stuff on Amazon. Brookfield CEO Bruce Flatt aka “The Warren Buffet of Canada” (only younger, smarter and more handsome) looks to move the company into global natural gas, renewable energy and water resources. As the McKenzie Brothers would say….”Beauty eh”?
Chip maker Nvidia also reported great numbers and the stock moved up as a result. Revenue was up 34% and net income was up 59%.
Have a good weekend. My wife and I will be scouting the Vance Creek railroad bridge this weekend for a possible scout hike and bungie jumping location. We want the lunkheads to work on their bungie jumping merit badge!