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The S&P closed Thursday only a few points shy of a new All Time High. With Futures currently in positive territory, it appears the market will make another run at it Friday. While everyone loves a bull market, there are reasons to be concerned. Rose Celine Investments summed things up nicely in a tweet Wednesday afternoon: valuations are stretched, the soft landing is fully priced in and sentiment is almost euphoric. However, that doesn’t mean it’s time to sell everything. Even if the market is ahead of itself, because of its long term track record you have to give it the benefit of the doubt. Rose Celine concluded their tweet with this: “If you’re a long term investor, don’t panic. But don’t get lulled into thinking trees grow to the sky either.”

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One of the more interesting battleground stocks in the market right now is Nike (NKE). The stock has been terrible for almost 4 years, losing 2/3 of its value over that time. But a turnaround may be brewing. NKE reported a terrible 4QFY25 Thursday afternoon. Revenue declined 12% and Gross Margin 440 basis points compared to the year ago quarter. As a result EPS declined to 14 cents from $1.01. But guidance for 1QFY26 suggests green shoots. Most importantly, revenue is only expected to be down mid-single digits. Shares are currently +10% in the premarket.

CNBC Fast Money did a terrific interview with NKE bull Randy Konik, Managing Director at Jefferies, after the report came out Thursday afternoon. Konik says to look through FY26 which will not be good to FY27 at which point he foresees a return to $4 EPS. If correct, NKE should recapture its historical valuation multiple in the mid-20s and shares should fetch $100 or more. The math adds up resulting in a 50% gain from current levels in two years. “The stock is going to work massively over the next 12 months,” Konik said. Top Gun got long NKE in a significant way after the last quarter and I am considering adding to my position Friday. Link here.

Finally, New York City appears poised to elect a Socialist Mayor in Zohran Mamdani, who beat Andrew Cuomo in the Democratic Primary on Tuesday. Because New York City is so deep blue, the Democratic Primary is the de facto election. The 33-year old Mamdani wants to increase the minimum wage to $30/hour, “freeze the rent” for more than a million tenants in rent controlled housing, create government run grocery stores, provide free bus rides and shift funds from the police to mental health professionals. Mamdani proposes to pay for these things by increasing taxes on business and the wealthy (“Zohran Mamdani Wants New York To Try Real Socialism” [SUBSCRIPTION REQUIRED], The Wall Street Journal, Saturday June 23). Anybody with a basic understanding of economics and law and order can foresee the consequences of such policies.

“It’s officially hot commie summer”, tweeted Third Point Capital’s Dan Loeb early Wednesday morning. Lazard CEO and former Office of Management and Budget Director under President Obama Peter Orszag told CNBC’s Sarah Eisen and David Faber Thursday that “The Democratic Party is becoming increasingly antisemitic and anticapitalist.”

SLG Green (SLG), an office REIT focused on Manhattan office buildings, got hit hard in the wake of the election results during Wednesday’s session. “Palm Beach realtors brace for surge in new business,” tweeted foreign policy maestro Walter Russell Mead. I’m reminded of a transaction that caught my attention a couple weeks ago in which another REIT – $2 billion InvenTrust Properties (IVT) – sold five Southern California retail centers for $306 million as part of their plan to leave California and focus on fast growing Sun Belt markets. California and New York are becoming increasingly difficult to do business in due to the political climate and investors and businesses are voting with their dollars.

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