Sept 29
We, the people, are the ultimate sovereign; therefore, when members of the military take their oath of office, they pledge to defend the Constitution, not the president.
Political neutrality is a democratic ideal. As such, it is not a promise of absolute military subordination to the executive.
On the contrary, it is a commitment to uphold the political order that ensures the sovereignty and liberty of the people.
This requires a clear separation of the military from a president’s partisan political agenda. (The author is a professor at West Point.)
https://www.nytimes.com/2024/09/29/opinion/trump-military.html
Long ago, when I was a student at the University of Connecticut, I attended conferences at both West Point and Annapolis, the home of the Naval Academy. The purpose of the conferences was to expose civilian students to the cadets and midshipmen and to emphasize that the duty of everyone is to the Constitution.
Markets and Stocks
The market is in good shape. But it is not cheap, invest don’t trade.
The September employment report is out on Friday. The market is looking for a number around 150,000.
Right now good economic news is positive for equities.
Historically, October is a tough month for stocks, with the S&P 500 posting an average daily move of 1.3% up or down. But fundamentals are excellent, so corrections and dips are buying opportunities.
As of Friday’s close, the Dow and the S&P 500 were on course for a 1.8% and 1.6% gain in September, respectively, while the Nasdaq Composite had gained 2.3%.
On a quarterly basis, the blue-chip Dow was the outperformer, up 8.2%. The S&P 500 had risen 5.1%, while the tech-heavy Nasdaq Composite was higher by 2.2%. See CNBC.
Fed Chair Powell speaks later today about the state of the economy.
Tuesday, the ISM manufacturing report will be released. It will probably be a soft number, but manufacturing only accounts for 12% of GDP. Household consumption drives the economy, at 68-70% of output.
Thursday, the more important and relevant ISM services data will be available. It should point toward positive economic growth.
Thursday, the very important jobless claims data will be released. Claims are the best real time measure of the state of the economy.
Included with the employment data will be wage information. Trends in wages are very important as prices and wages will converge.
I like Eaton, ETN.
Eaton is global power management company, that provides products and services for the electrical, aerospace, hydraulic and vehicle products industries. It a big beneficiary of the electrification and digitization of the U.S. and global economies. ETN should earn around $13 in 2025. It generates high returns on equity, 20%. It should grow earnings at 12-15% over the balance of the decade. It is a name that you can buy and hold. My 12 month target price is $390, up about 18% from current levels.
https://finance.yahoo.com/news/reasons-add-eaton-etn-stock-162900501.html/
I also like Flowserve, FLS. The company manufactures and provides services for fluid control systems. It should earn around $3.25 next year. It carries a return on equity of 14%. It a play on the rapid growth in power generating facilities in the United States and overseas. AI, digitalization and electrification all mean that the U.S. needs more power, inexpensive 24/7 energy. The stock is trading around $52. My 12 month target is $65, up about 20%. The market cap is $7 billion.
https://finance.yahoo.com/news/flowserve-corporations-nyse-fls-recent-140355654.html/
Economics
The more that the U.S. and its leaders embrace free market capitalism and the concept of liberty for the people, then the more prosperous we the people will be. Moreover, at the end of the day, national security is largely a function of economic power. A country with a large GDP has more resources available for national defense.
But as government grows the size of the more productive private sector falls. Government and capitalism can but most often don’t have a symbiotic relationship.
As government interferes with the private sector, corruption, crony capitalism and regulatory capture become inevitable.
Sociology
@robkhenderson "Globally, more than 90 percent of homicides are committed by men. Most victims of homicide are also men, about 70 percent. The figures for chimpanzees are nearly identical; 92% of chimpanzee killers and 73% of chimpanzee victims are males."
https://t.co/CdaEAlyEXphttps://x.com/robkhenderson/status/1720220289642934542?s=66&t=hi3LjJ8kVbN50WgSIEfnAg
"greater male variability hypothesis is largely an empirical finding. Males are overrepresented at the bottom end and top end in height, weight, physical aggression, tendency to cooperate...as well as cognitive abilities and IQ test performance."
https://t.co/IkNyqcE0rhhttps://x.com/robkhenderson/status/1720502480889348182?s=66&t=hi3LjJ8kVbN50WgSIEfnAg