A Modest Nike Success?

Kevin Williamson and Jim Geraghty at NRO are on the advantages of being a progressive or a Democrat.  Here is Jim:

The concept of membership in the Democratic party being the modern equivalent of an indulgence, instantly washing away sin, is going to be appealing to some citizens and repellent to others.

Kevin has a similar but slightly different take:

Because they think of themselves as a special enlightened caste, progressives care almost nothing about process. Process is for the little people. Elizabeth Warren wouldn’t care if a Supreme Court opinion read “Ooo eee, ooo ah ah, ting, tang, walla walla bing bang” so long as it provided the result she wanted. But, of course, process matters. It is a bulwark against both anarchy and tyranny. [Emphasis added]

Sidebar One: When we read Kevin’s article we thought that the lyric that we noted in bold were great but so obscure that there should be a cite.  We checked Wikipedia and concluded that it is less obscure (Family Guy, Jonathan Creek, Muppets, etc.) than we had thought.  End Sidebar Two.

We like progressive rather than Democrat although the Venn Diagrams have a large overlap.  Social Justice Warriors [SJW] have another similar Venn Diagram.  It is fun to be a progressive.  It is why so many folks who are not progressives enjoy The Donald and other folks who behave like progressives.

Our point is to evaluate Nike.  About 10 days ago they embraced Colin Kaepernick with an ad campaign.  Some conservatives were delighted that Nike market capitalization went down by almost $4 billion.  We were not as enthusiastic.

Sidebar Two: The Efficient Market Hypothesis (EMH) says the market reacts instantly to all new information in an unbiased manner.  We believe in EMH.  The question is what is new information.  The Colin campaign is one piece of information but other information comes out too.  You also need to look at the direction of the whole market to evaluate an individual stock.  Fortunately the whole market hasn’t made any big moves recently.  End Sidebar Two.

The market gives us prices.  We interpret those prices but there are many possible interpretations.  What has happened is that Nike stock did drop the day Colin was announced but it has rebounded since.  Today it is reaching record highs.  Our interpretation of Nike is consistent with Jim and Kevin’s point on individuals.  Because of the differences in behavior of the left and right, Nike’s biggest risk is with the SJW on the left.  Nike has bought on of the indulgences that Jim talked about.  By supporting Colin Nike has reduced the risk of SJW exposure from its overseas activities.  Nike isn’t home free as Harvey shows but, in our view, the market has concluded that Nike has reduced its biggest risk.  Most information is forthcoming every day.  We shall see.


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