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Tuesday May 10, 2016

// May 10th, 2016 // Daily News

This market is riddled with trap doors: Evercore strategist

CNBC.com

A weakening dollar has eased concerns about U.S. companies’ overseas performance, but Evercore ISI portfolio strategist Dennis Debusschere warned on Tuesday that bad news can only translate into good news for so long.
The greenback has weakened because central banks have been suppressing volatility and U.S. economic data have been deteriorating, Debusschere said. As a result, economic performance and volatility have diverged, he added.
But over time, the two tend to converge, Debusschere said. That creates a “trap door scenario” in which the bottom could fall out of U.S. markets, he said.
“This idea that bad is good in the sense that it weakens the U.S. dollar on a go-forward basis, is always good until it’s not,” he told CNBC’s “Squawk Box.”
So while the weaker dollar has gotten the U.S. economy out of the woods for the time being, stock multiples are now very high relative to their underlying fundamentals, he said. Those valuations have run up in part because volatility is artificially low, according to Debusschere.
“The market is riddled with trap door scenarios as long as that continues,” he said.
David Lebovitz, global market strategist at JPMorgan Asset Management, said the divergence between the stock market and underlying fundamentals is concerning.
“We need to see some earnings growth later this year. Otherwise the fundamental thesis for stocks starts to go out the window,” he told “Squawk Box” on Tuesday.

Today’s Inspiration

Putting Smiles on Faces

by Joyce Meyer – posted May 10, 2016

Therefore encourage (admonish, exhort) one another and edify (strengthen and build up) one another….
—1 Thessalonians 5:11

God created Adam and Eve, He blessed them, then told them to be fruitful and multiply and use all the vast resources of the earth that He gave them in the service of God and man.

Are you being fruitful? Is your life causing increase? When you get involved with people and things, do they increase and multiply? Some people only take in life, and they never add anything. I refuse to be that kind of person. I want to make people’s lives better. I want to put smiles on faces.

We must all make sure that we are not like the rich man in the Bible who had so much that all of his barns were full with no room for more. Instead of giving any of it away, he decided that he would tear down the barns he had and just build bigger ones and collect more stuff for himself. He was a foolish man. He could have decided that he would use what he had to bless others, but he must have been a fearful, selfish man, who only had room in his life for himself (see Luke 12:16-20).

God called the man a fool, and said, This very night they [the messengers of God] will demand your soul of you; and all the things that you have prepared, whose will they be? The man was going to die that night, and all he would leave behind was “stuff.” He had an opportunity to make the world a better place. He could have added to many lives and put smiles on thousands of faces. Instead, he fearfully and selfishly only cared about himself.

Forget about yourself and start doing all you can to help others. Encourage, edify, lift up, comfort, help, give hope, relieve pain, and lift burdens. If that is your goal, you will be one of those rare individuals who actually make the world a better place and put a smile on every face.

Trust in Him: What are you going to do today to put smiles on faces? It won’t just happen—you have to be intentional about it. Listen for God to show you what to do and then trust that it will bless them…and you!