June 2, 2017 update:
Markets are gaining momentum. As of this Thursday and Friday, a risk-on appetite from strong labor market data and positive expectations among businesses and consumers led to put more money into smaller, riskier growth stocks. This is a good sign. Moreover, it reinforces the prospects for a continuation of the current bull-market in stocks.
Except for the stock market, the economy has been on a recessionary trend the last 8 years. It is the improvement in economic outlook that has changed and not so much a stock market that was slowly deteriorating due to declining earnings and profits. The change in economic prospects since the election has simply revived the stock market and provided a foundation for it to continue its upward ascent. All this is new. Within this long-run growth context, continue to look for US politics and geopolitical events to offer short-run buying opportunities. Good investing!
June 9, 2017 market update: Consumer expenditures are strong, earnings are strong, and the labor market is improving. Political noise is much less important than economic and market fundamentals and small cap, risk-on investment is reasserting dominance. All signs are bullish, accept for the Trump agenda.
Fast run-ups in tech equals fast run-up in risk. Expect a slow down or correction before the tech run-up continues. Also, sector rotation into EU small and midcap value and growth stocks will continue so buying into that will keep you ahead of the game. Defensive minded investors can look at US utilities, keep cash on hand, and hedge their bets with inverse beta stocks. Good Investing!
Monday, June 9, 2017 update: The previous week is the last haul of stuff from Oklahoma to my daughter in California.
Hope you decided to buy on the tech dip last week. In particular, my two recommendations UCTT and SOXL are excellent choices and are both up strongly today. I’d add in FB, WB, BABA and LRCX as well. The Schumpeter tech wave has a long run ahead.
June 22 update: Buy Weibo (WB) on the big dip. The license issue is little more than noise relative to a very high rate of revenue and profit growth.
Update for the last week of the June and the second quarter: Portfolio managers will be busy rebalancing their portfolios this week and especially toward the end of the week. Look for pull backs that lead to buying opportunities. The bull market charges ahead and that means there is always a profit opportunity by going long somewhere in the market. Take my earlier advice on the EU as the target for sector rotation and buying my recommended stocks of the week. Remember, in the long-run noise is much less important than the market or stock fundamentals. Good Investing!
June 30, 2017 Market Update: Nothing fundamental, such as earnings, have changed or deteriorated among the tech stocks. The sell-off or pull-back is therefore a short-run or temporary phenomenon. Better still, it presents an opportunity to profit. Just buy the dip. The bottom is always hard to determine but fundamentals and future earnings mean that things must turn around at some point and these stocks will go back up. That said, semiconductors are typically weak in July so the rebound in some stocks could be slower in coming. Good Investing!
For those wanting extra help with investing, please consider the following helpful resources.
1. Build a retirement portfolio with Market Riders.
2. Get current stock market data and analysis at Smarter Analyst.
