We have been asked over and over these past several weeks when we thought the bleep was going to hit the fan, and the market take another big plunge. The economic and investing environments are confounding — the tape action has the appearance of a bull market, yet so many Read more
Depending upon their industry and its growth outlook, stocks in the U.S., Japan, other growing countries such as Canada, Australia, India, China, and Europe, are moving ahead. Depending upon their near- and intermediate-term outlook, some sectors are moving haltingly — sideways or down — and some are moving upward vigorously. Read more
Earnings calls will include a lot of information about the bounce back in business activity, which will vary greatly from industry to industry. We will be listening to many calls of interest in order to gain insight into these dynamics as closely to real-time as we can manage. November’s elections Read more
Robinhood Earlier this year, just before the pandemic broke, Bloomberg Businessweek featured a cover story about r/WallStreetBets, a bulletin board on the Reddit news aggregator populated by young traders with Gen Z attitudes — boasting ironically as much about their failures as their successes, churning out an endless stream of Read more
Most of our thoughts about the overall market landscape are contained in this week’s headline piece. Obviously, the market is rewarding perceived beneficiaries of covid-related changes, and punishing companies that are believed to be challenged by them. This week we discussed some of the tech beneficiaries, especially in the e-commerce Read more
Two weeks ago, the worst single-day decline since March was blamed in part on emerging signs of a second wave of coronavirus illness in some reopening states, particularly Florida, Arizona, and Texas. That nervousness in turn raised fears that in some locations, authorities might need to re-institute lockdowns or tighten Read more
Time To Look To Cyclicals? Much of the heavy lifting in the markets’ breathless recovery from March’s lows has been performed by the mega-cap growth companies such as Microsoft [NASDAQ: MSFT], Facebook [NASDAQ: FB], Apple [NASDAQ: AAPL], Amazon [NASDAQ: AMZN], and Alphabet [NASDAQ: GOOG]. We believe that the overall Read more
The U.S. economy is reopening across many states: While after the sharp snapback rally, a 5 or 10% market correction in June or July remains a distinct possibility, we believe that monetary and fiscal support have taken many “worst case” scenarios off the table. Last week we mentioned data from Read more
In the past month, the aggressive growth industries — primarily tech hardware and software, internet, cloud, cybersecurity, and biopharma — saw their stocks rebound and move ahead, dramatically outpacing the rest of the market. The rally from the pandemic bottom was thus rather narrowly based, with technology megacaps responsible for Read more
The United States Perhaps the most important Federal Reserve actions in response to the crisis have been the establishment of facilities to support corporate credit – by buying both investment-grade debt, and the debt of “fallen angel” corporates driven into junk status by the effects of the pandemic. That announced Read more
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