Treasury Note Hits 3% - Markets Sell Off and CAT CFO Places Foot in Mouth!


The yield on the 10-year U.S. Treasury note hit 3% for the first time since 2014. That and the idiotic remarks by Caterpillar's CFO sent the markets down. Who in their right mind, a person who's main responsibility is to increase shareholder value, would state to the world - Our first quarter will probably be the best for the year and the following quarter not so hot. In essence, that is exactly what Bradley Halverson told analysts today.

The construction equipment maker's shares (CAT) plummeted 6%, the worst decline since June of 2016. What could someone in that position have said other then what he did? Lots of things. So you be the judge. Would you want your CFO to say that the company hit the best quarter for the year and the rest of the year looks not so hot. Or should he have said: Our stock value has increase 49% in the past year. This quarter is significant and we will continue to work hard on growth globally as we deal with an ever changing environment. But as we have proven year after year we will continue to excel. Which statement would have worked best?

I wish I could get hired and paid what these men and women are paid that have no common sense whatsoever. But maybe, just maybe, it was a maneuver to drive the price down to create a buying opportunity! Should the SEC investigate the CFO for deliberately making remarks to drive the price down. But as we all know there is absolutely no manipulation ever in the stock market. No one in NYC makes a dime manipulating markets it is all on the up and up. Just ask Bernie Madoff.


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