Sell Ford, Buy Tesla on Growing Income Inequality

I heed the words of Billy Joel in this regard:

I once believed in causes too/I had my pointless point of view/And life went on no matter who was wrong or right

For better or worse, you need to keep up on politics if you follow the stock market.

Just after Wednesday's close, several stories on TheStreet's homepage dealt directly or indirectly with politics. Everything from economic turmoil in Europe (an inherently political issue) to Dick Lugar's loss in Indiana warrants mention alongside the market. Even word that a president I am bearish on decided to support an issue I am 100% bullish on deserves space on a site like TheStreet.

Politics can move markets, particularly during an election cycle.

That said, I hope we can agree on something at least for the sake of argument: We have what I will hesitate to call an income inequality "problem" in America. I use the word "problem" with caution, as that word can take us deep into subjective territory. Objective data does show, however, that both income and wealth concentrate in the relatively small upper echelons of society. Expect that trend to hold constant or intensify, but not revert meaningfully anytime in the foreseeable future.

If we can agree on this, we can agree on an investment philosophy I intend to outline in several articles on TheStreet over the next several weeks.

Buy Companies That Cater to High-End Customers

Tesla Motors(TSLA) might be one of the most misunderstood companies in America. I have countered the bear case for quite some time now. We'll see what TSLA does over the next few regular trading sessions, but if Wednesday's after-hours activity serves as a reliable indicator, the market is finally starting to "get" Tesla.