Published September 25, 2020
After a summer spent surging higher on economy re-openings and optimism for growth, stocks have entered a typical September slump. While we could just chalk it up to typical pre-election caution, there are fundamental factors that have emerged to challenge the market perhaps more seriously than usual. (more…)
Published August 28, 2020
The article below from Delta Investment points to the gathering economic and market strength internationally. As noted before, a broader market is a stronger market. The more sectors and markets participate in the market’s rise, the better. For now, our favored Nasdaq index (QQQ) continues to lead the way, powered by the FANGMA trade. (more…)
Published August 21, 2020
As we head toward September and October, it’s worthwhile to remind ourselves that these months can be dangerous for stock investors. That’s particularly true in an election year. (more…)
Published July 24, 2020
We have mentioned recently the need for the stock market to expand its participation if the rally was to continue. Over the past couple of weeks this appears to be happening. See below a variety of sectors outside the usual FANGMA* tech/consumer complex that have been showing strength. This rotation is what fuels longer-term stock market rallies.
Published July 17, 2020
A few miscellaneous notes this week that describe the current market outlook, foggy though it be. Starting at the highest level with the wide range of earnings projections for the S&P 500. Currently, the S&P 500 index trades around 3200. If we look at the chart below, we see a 2021 earnings per share for the S&P 500 range of $135-170. At $135, the S&P 500 is trading at price-earnings ratio of 23, on the high end of “normal”.