If you read our weekly update you know we have been talking about the severe overweight of technology in the S&P 500, and, in particular, the over investment in the FANG stocks. We do not believe there is much of an issue with a trade war with China, it is about overvaluation and over ownership…
Read BlogGiven the most recent pullback in the market we were able to buy some very high-quality companies at valuations we have not seen in a while. With the roughly 10% pullback in the S&P 500 and the benefit to earnings from lower corporate taxes, some of these very high-quality stocks have become attractively valued. Please…
Read BlogThe earnings for the S&P 500 this year are expected to be up 18.6%. This very strong growth is driven to a large degree from lower taxes for corporations and to a lesser degree from economic growth. We believe expectations are very high for corporate profitability. Our concern centers around mostly next year being too…
Read BlogOn Monday, the techology sector had a very tough day, down -2.0%. Technology is a critically important sector for the market as it is nearly 30% of the S&P 500. This is near the highest weighting it has ever been, and obviously a function of the incredible appreciation of the FANG stocks. Please click the…
Read BlogThe Employment Report last week was about as good as it could have been, much better than expected in terms of new jobs created and the wage inflation was high but lower than expected. Both the stock market and bond market were pleased. Please click the link below to continue reading: Market in a Minute…
Read BlogThis Friday the Employment Report is released for February, with the consensus of 200,000 new jobs created. The focus of the report will be on average hourly earnings, the year over year rise in January was 2.9%. If you remember, this set off a -12% correction in February for the S&P 500, and the 10-Year…
Read BlogLast week we discussed that the bond market yields rising may have overdone it to the upside. The 10-year treasury got to about 2.94% last week and then pulled back to 2.86% currently. We said the Citigroup Economic Surprise Index seemed to be about out of surprises, was likely topping out, that in the short-term…
Read BlogBelow is a chart of the S&P 500 Index and the 20, 50, and 200 day moving averages, as you can see the market came down and touched the 200 day moving average and has rebounded about 2/3rds of the loss, it is still below the 20 day moving average. Please click the link below…
Read BlogThe S&P 500 fell from the most recent high in January to the intra-day low last Friday just under -12%, down to the 200 day moving average before bouncing a little over 5% in total through Monday. We would expect a series of lower highs to develop over the next several months. Please click the…
Read BlogThe S&P 500 fell over 6% over the last two days. Obviously, we believe this was well overdue. The action in the market is a bear market type of trading action. Major stocks are acting horrible. As an example, Exxon Mobil fell over 12% in these two days. The momentum stocks held up well on…
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