market rally

Weekly Update

The Market Finds Something to Worry About

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Published August 18, 2023

 

Stocks rise on a ‘wall of worry’. As the worries turn out not to be true, buying accelerates. The market’s euphoric rally in June signaled that investors collectively had overcome virtually all the worries of recession and interest rates leading to the bear market. In true bull market fashion, investors have rotated from the initial leaders to other sectors of the market, lifting all boats as it were. Eventually, a new worry surfaces sending prices back down a bit in a market correction. We are there now. (more…)

Weekly Update

Still Stormy Out There

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Published June 10, 2022

Investors are facing a tremendous amount of uncertainty these days as inflation continues to push out the timeline for when the Federal Reserve might pause interest rate hikes. Friday’s “hot” inflation data offered the Fed no new cover for backing off their inflation-fighting posture. (more…)

Uncategorized, Weekly Update

The Stock Market Adds New Fuel to the Rally

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Published July 24, 2020

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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.

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Uncategorized, Weekly Update

Revisiting How a Market Rally Begins and Sustains – 2017

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Published May 18, 2018

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This week we bring you a revisit to a prior article from January 2017. Recall that in January 2017 we were in the early days of the new Trump administration. Stocks had popped higher on expectations for a more business-friendly government (and later continued higher on a surge in corporate earnings and a rare (and brief?) period of synchronized global economic growth). (more…)

Weekly Update

Why worry?

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Published February 17, 2017

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After two months spent churning around while the Nasdaq index caught up, stocks have powered upward so far this month. With this second leg of the post-election rally kicked off, investors have a substantial fear of missing out (FOMO as the social media set would call it). This self-reinforcing ebullience has pushed volatility to extremely low levels. As Chart 1 below from Charlie Bilello shows, the S&P 500 has set a record for the number of days without even a +/-1% move, a record that now stands at some 44 days, a full 10 days or almost 30% longer than the prior record. (more…)