Diamonds and Dogs

5/13/20

Boring is beautiful. Cereal maker, General Mills (GIS) is up 2% to a three year high after raising guidance two days ago. Thanks to the stay at home orders in most states, General Mills was able to raise guidance for the quarter due to strong sales as consumers, unable to gauge the severity and duration of this pandemic, are stockpiling goods, especially staple items to avoid venturing out.

Billionaire, David Tepper pours cold water on the recent rally saying the markets are overvalued while the risk/reward is not good. The banks stocks are down at least 3% after David Tepper said he did not like the sector with interest rates at zero and rising loan losses. Wells Fargo (WFC) is down 7% to a new 52 week low with a dividend yield of 9%. Wow.