Good morning.

While Santa Claus didn’t show up for the rally held in his honor, markets are rebounding this morning … leaving some to hope stocks will add on to last year’s gains.

Let’s face it … talking about such cutely named things such as the “Santa Claus Rally” gives strategists something to chat about to grab the attention of listeners … and even makes them sound smart … but it may be important to remember the market doesn’t own a calendar and certainly doesn’t spend time watching business news channels to learn how it is supposed to behave.

What brought on my cynicism surrounding this was a quick search on how terrible things must be following a “failed” Santa Claus rally … for listening to recent stories, I was prepared for the worst.  To my surprise, Morningstar pointed out the last time the Dow fell during the supposed rally was nine years ago (when it faced a 2.2% drop).  And how did the index react for the rest of the year? Up 15.2%, thank you.   Santa did show after all … but it just so happens he was a bit late.

Meanwhile, there might be an early test for the Trump Administration as the delayed dockworker’s strike could begin shortly after Jan. 15 (with risk of continuing past Inauguration Day).  The claimed complaint is an interesting one … even as a 62% raise over the next 6 years was already achieved … for “automation” is under attack as the workers fear losing jobs to machines.

Speaking of automation, I am excited about going to CES (Consumer Electronics Show) this year but have a close eye on the weather report as … for the moment … a snowstorm is expected to arrive here just hours before my plane is scheduled to leave. Ugh. So, I might miss writing on Monday as the laptop in front of me might be replaced by a shovel.

On a final note for today, the U.S. Surgeon General is up in arms over the reported link between alcohol use and cancer … and feels that alcohol should carry warning labels.  Yep, the hangover and other not-so-pleasant destruction resulting from alcohol does not seem to be enough … so we are bringing out the big gun … warning labels.  I’m sure that will help.

It’s time to get started with my New Year’s Resolution … which I will get to this afternoon … but one thing bothers me.

… I just find it amazing how “exercise” and “extra fries” happen to sound so much alike.

Have a great day,

Joseph G. Witthohn, CFA

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