Stress Tests

(1) Lots of stresses on US economy. (2) Global economy more coupled than ever. (3) Still betting on US consumers. (4) Labor shortages are a problem. (5) Big banks are big punching bags for Democrats. (6) A 10-fold increase in Dodd-Frank page count, and 34 times bigger than Moby Dick. (7) JPM and GE slim down. (8) No sympathy for the banks from us. (9) Bank loans at record high, though margins are thin. (10) Most banks minimally exposed to oil crash. (11) Valuation reflects that banks have become regulated utilities. (12) Focus on market-weight-rated S&P 500 Retail industry.