S&P500

Weekly Update

The Stock Market Has Expanded Participation and Become Expensive


Published December 4, 2020

Below are some slides from a recent presentation by Charles Schwab market analyst Liz Ann Sonders. They give a good overview of recent market action. The first slide shows how the top 5 stocks in the market drove returns through the first eight months of the year. Since August, the other 495 stocks in the S&P 500 have at least helped do the lifting. (more…)

Weekly Update

Have We Just Witnessed the Start of a New Multi-Year Bull Market?


Published November 20, 2020

 

The stock market has blasted upward in a very bullish sign for investors. Last week we talked about how value sectors were finding buyers. This week, we offer even more evidence of the new bullishness in the stock market. Driving this bullish attitude is the announcement of coronavirus vaccines. Those announcements have led investors to expect a return to some economic normalcy in the first half of 2021. (more…)

Uncategorized, Weekly Update

Sector Rotation Adds New Fuel to Recovery Rally


Published May 29, 2020

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Bullish markets are characterized by sector rotation. There are always sectors that consistently lead the way. But investors can only push a single stock or sector’s valuation so high. To keep the bullish fires burning bright, they eventually have to find other sectors attractive enough to invest in. This week we saw a couple of powerful days of sector rotation. The stocks that had been beaten down the most suddenly became the stars of the show. The stocks that had been favored got sold off, at least for a few hours. (more…)

Uncategorized, Weekly Update

Bear Market Perspectives


Published March 27, 2020

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This week, as we hunker down and ‘shelter-in-place’, we offer an assortment of bear market observations. First, we will start with noted market observer Josh Brown’s views on whether the stock market has seen its worst days yet. That is followed by Dan Sullivan’s more historical view on bear markets. We remind readers that Wall Street is in New York City, which has been on the front lines of the virus in the USA over the past few days and weeks. It’s no surprise, then, that the investment community in NYC will feel more besieged by the virus news than some other parts of the country. Keep that context in mind as you read. (more…)

Uncategorized, Weekly Update

Utilities(?!) Power Ahead


Published January 24, 2020

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One of the oddities of the market so far in 2020 is the decline in interest rates. After rising in the latter half of 2019, interest rates appear to have rolled over and begun heading back down over the past month. While that’s not long enough to declare a trend, the behavior of interest rate sensitive sectors tells us that this is a significant shift. (more…)