CEO change from Mark Fields to Jim Hackett. They like his having run the Ford Smart Mobility unit and think the self-driving fleet- management business could be more profitable for Ford down the road than their current car-making business is today. (At 2% margins, it’s hard to be worse.) Electric technology is a game changer and it’s here to stay. However, we bet that Goldman’s estimates on profits are likely too high. It will take time for that to play out. In the meantime, there is serious pain in auto land around subprime lending and the flood of used cars coming onto the market. If you want to invest in self-driving cars and the technology revolution around those platforms, why not invest in names with growth potential like Nvidia (NVDA), Intel (INTC), and Microsoft (MSFT). JUNE 1 The U.S. walks from Paris Accord President Trump has opted out of the Paris Accord to save jobs and expects to negotiate a better deal for
Electric technology is a game changer and it’s here to stay. However, we bet that Goldman’s estimates on profits are likely too high. It will take time for that to play out. In the meantime, there is serious pain in auto land around subprime lending and the flood of used cars coming onto the market.
the U.S. down the road. Sectors that benefit from the cancelled Accord are oil, though more drilling and new projects would eventually pressure oil prices... Coal, particularly clean coal, also benefit. Utilities and any company involved with cement, aluminum, iron and steel rally. Even automobile stocks rallied – at least initially. Don’t forget these are bad business models. The losers are solar and all alt-energy related names. Same with electric car maker Tesla (TSLA). JUNE 8 Former FBI director James Comey testifies The month’s political “main event” of Comey’s testimony
underwhelmed investors. The questions and answers didn’t produce anything new and markets rallied after selling off. JUNE 8 House votes on Dodd-Frank In addition, the House approved a sweeping bill that makes significant headway in changing cumbersome Dodd-Frank regulations. But the problem is that in its current form, it won’t get any play in the Senate. All the legislators have their own agendas and will want to make their mark on the new rules. It’s a start, but like healthcare reform, it’s a long way from everyone singing from the same sheet of music.
American Consequences | 11
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