Goldman Sachs upgraded Johnson & Johnson Friday from "sell" to "neutral" with a $95 price target, up from $87. This was based on an improved pharmaceutical business outlook. Tuesday's earnings report and the company's guidance will tell us more.
So it goes with the 3-ring spectacle that all investors are watching and somehow impacted by. Political and fiscal buffoonery is both entertaining and at time disheartening, but it's also opportunistic.
One of my colleagues reminded me that "Ultimately the government shutdown is very bullish for stocks, plain and simple. By lopping off a half percentage point or more from GDP growth, it will moderate any inflation in the pipeline -- and, unfortunately, aggravate unemployment.
"On the flip side, it'll allow the
to keep rates lower for longer. And easy money is something Wall Street can't get enough of."
So don't clown around with the current visitation of "The Greatest Show on Earth"... and by all means don't let it fool you. Like any good entertainment, it's packed with illusions and lots of surprises.
The emcee is standing on top of his platform. He's speaking secretively and wait ... even though what he's saying is barely audible... I think I can read his lips. "Buy the dips" he keeps on repeating, "Buy the dips". Perhaps "dips" are like cotton candy and popcorn at the circus, especially at the show's ending. The concessionaires put all their unsold goodies on sale.
Catch my drift, know what I mean, and are you ready to buy low?
By the way the emcee has changed and now he looks a lot like Ben Bernanke. He's got an understudy with him who is carrying a growing megaphone as she learns the lariat tricks of this exciting form of entertainment. It looks like protégé Janet Yellen will be doing a lot of "yelling" when she becomes emcee, (it goes with the job) and she may be perfect for this three-ring circus... and I bet she knows "the secret" too.
At the time of publication the author is long JNJ but is neither long nor short any other companies mentioned in this article.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.