Weekly Update

Weekly Update

Markets Struggle to Find Footing


Published February 4, 2022

Stocks remain troubled. The past ten trading days have seen the market pushed all over the place with huge swings depending on whether investors were pleased by company earnings reports. Pandemic favorite Netflix issued soft subscriber growth guidance and was hammered – giving up two years’ worth of stock gains.
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Weekly Update

Historical Data Suggests Further Volatility Ahead Before a Strong Recovery


Published January 28, 2022

 

This week we are reviewing some interesting data from a recent presentation made by CFRA. The three charts tell a possible story for how this year will play out. First, after a strong year in the market in 2021, we have seen stocks hit a wall, tumbling hard throughout January. This selloff following a strong period is common, at least in the short-term. (more…)

Weekly Update

Selloff in Growth Stocks Expands to Broad Market


Published January 21, 2022

 

Markets have struggled mightily so far in 2022 as looming Fed policy changes merge with Omicron-fueled slowdowns and Russia-Ukraine tensions to put investors on edge. Growth stocks, presumably more sensitive to rising interest rates, have stumbled the most. (more…)

Weekly Update

Value Stocks Might Finally Be Ready to Run


Published January 14, 2022

Last week we discussed the interest rate surge taking place at the beginning of 2022. This surge has driven a major shift in favored sectors. Cyclical “value” sectors like energy and financials have become the market darlings. (more…)

Weekly Update

The Fed Presses on the Brakes


Published January 7, 2022

 

Markets have kicked off 2022 with a bit of a bang. Interest rates have surged higher as investors bet that the Federal Reserve will act quickly to tamp down nascent inflation and return interest rates to their pre-pandemic levels. (more…)

Weekly Update

This Weird Job Market


Published December 31, 2021

We can think of few other aspects of life that have changed so dramatically from the pandemic as employment and the job market. Radiating outward from the changes in the job market, wages are the most critical component of inflation, a huge buzzword in 2021. If wages have been permanently kick-started into a regime of growth, then inflation will remain far more than a transitory influence in the economy and markets. (more…)

Weekly Update

A Strong Year for the Broad Market Masks Plenty of Weakness


Published December 24, 2021

Despite the broad market S&P 500 hitting new highs, this year has been one of frustration for much of the stock market. The roughly 2000 stocks that make up the small cap index have gone nowhere since February. A breakout in November offered hope that small cap stocks would join the large-cap brethren in charting new high ground. But that effort was quickly turned away. (more…)

Weekly Update

Historical Returns Data Suggests More Gains in 2022


Published December 17, 2021

This week we offer another outlook for 2022; this time from Delta. Reading various outlooks from different groups can, taken together, provide a view of what the ‘market’ expects. Note that our models rely on actual price data and do not include any forecasted information such as these outlooks. (more…)

Weekly Update

Economic and Stock Market Outlook for 2022 – Part 1


Published December 3, 2021

Stock markets have come under pressure lately as the Fed begins withdrawing stimulus and a new Covid-19 variant hits investor confidence in the economic recovery. Over the remainder of the year, we will pass along Schwab’s 2022 outlook, breaking it into a few parts covering the economy and markets. Schwab, having acquired TD Ameritrade, is the biggest retail stock broker in the country. As such, their analysis and insights can have a substantial audience and potential impact on investors. (more…)