The broad based S&P 500 and Russell Indices are hitting multi-month highs while the tech heavy Nasdaq has been reaching record peaks with regularity this year. Despite the Wall of Worry over China Trade, the Bullish behavior of stocks hitting higher highs and higher lows is becoming obvious to the masses. We don’t…
Apple became the first company to surpass the $1 Trillion market cap today, but they have no place in Trump’s mantra of “Making America Great Again”. Even Apple’s sales appear almost immune to tariffs from China or the US. In promising to bring back US Manufacturing jobs, our President’s messaging heaps an inordinate…
Everyone knows Tech has led the the stock market higher since Trump was elected and 2018 has again demonstrated strong tech leadership. The resplendent tech vanguard is dominated by the $3.3+ Trillion behemoths under the Jim Cramer acronym known as FAANG (Facebook, Amazon, Apple, Netflix and Google). The tech heavy Nasdaq is…
Almost a third of Banks are experiencing a spike in consumer credit card defaults to levels associated with recessions. While it could be a canary in the coal mine warning of a crisis rumbling through this strong economy, it may also be an errant spark by the feeble financial sisters supplying…
Awareness of the yield curve and the dreaded potential for inversion as a harbinger of recession has never been more prominent in the news. Esteemed Federal Reserve members, commercial banking CEO’s and economists have acknowledged recently that an inverted yield curve is a powerful indicator of a coming recession. The yield…
We all know intuitively that increasing demand combined with shrinking supply will elevate value. Thus esteemed economists are confounded by the “appearance” of below normal wage growth despite record demand for jobs and fewer workers available. False blame has been thrown at greedy corporations not sharing profits, at slack labor demand,…
In 2017 virtually all stocks outside of the energy sector moved steadily higher. In 2018 our forecasted corrective period bifurcated the market into Trade War sensitive stocks and those with stellar earnings and immunity to trade retaliation. Essentially tech has been the big winner. One of the big losers has…
The Atlanta Fed estimates a whopping 4.7% GDP growth in the 2nd quarter of 2018 and ISM manufacturing backlogs are near three decade highs. The current order backlog logjam and extreme small business optimism we highlighted last week resemble the record levels of 2004, signifying that we may be in the middle…
A Bloomberg article recently joined the chorus of stock market naysayers with a specious claim that the current record optimism displayed by Small Business surveys signaled that a market correction was due. Panics can occur almost anytime, but this theory lacks real evidence as have most clarion calls for a Bear market the…
The stellar 2017 gains in all major stock indices were earnings driven. In 2018 it’s news driven. SP 500 earnings grew an excellent 16% in 2017 with a 19% gain in stocks and profits have expanded to an 8 year high of 25% growth in the first quarter of 2018, well…
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