Expect the Unexpected

I repeat this Jeff Gundlach quote a lot because I love it and it constantly applies to something: “Whenever you hear people in the investment business say ‘Never’, that’s when you know it’s about to happen.”

The Dow is 2.6% away from record highs now that we’re through the fairly lousy earnings season. The SPX is even closer, just 2% away. There’s no reason. Anything can happen.

We’re getting a really great reminder of this every night, courtesy of the NBA East and West finals. Golden State barely lost a game in the regular season and pretty much manhandled their opponents in the first two rounds of the post-season. They broke dozens of records, both as a team and on an individual basis. Steph made 400 3-pointers, beating his previous record of 200 or something like that.

Now they can’t win a game against OKC. They can’t even win a quarter. They can’t shoot, they can’t rebound and they sure as hell can’t stop Westbrook and Durant. They can’t even stop the Thunder role-players. Two weeks ago they looked invincible. Now they need to win two straight just to stay alive.

Look north. The Cavs are now tied at 2-2 against Toronto. Another impossible situation. Cleveland swept the rest of the East in the first two rounds and it seemed like destiny that LeBron would face Steph Curry in the finals. He can’t even face f***ing Drake. Toronto is playing miraculous basketball while Kevin Love disappears and Kyrie Irving hits the front of the rim. It’s astonishing.

If present trends continue, the Raptors will be playing the Thunder in the finals and LeBron will be watching from a Buffalo Wild Wings. Let’s hope not, for the NBA’s sake. I think it’s clear they wanted expected CLE vs GS, but they very well may not get it.

Expect the unexpected.

And now, about that rate hike in June the Fed “definitely won’t” be doing…