A 10% Pullback in the Market = Healthy Buying Opportunity
$DIA, $SPY, $QQQ
Savvy investors are and have been expecting a dip in this long Bull Market and be prepared to buy more shares if stocks pull back 8 to 12%.
“Stocks, for the long run, are a great bet in America, a great bet in our free-market capitalism. You don’t want to sell now,” said Larry Kudlow.
“I probably would love to see a 5-to-10% correction in the not-too-distant future,” he explained, “because that would be an even better buying opportunity.”
A “pullback” is commonly defined as a temporary drop of at least 10% adjust for overvaluation.
Wall Street opened higher Friday and the DJIA closed higher for the 9th day running after data showed US employers hired more workers than expected in July.
Cynical pundits have been saying the market could not go any higher seemingly since the first stock was traded
“They can go a lot higher – you’ve got to have a long-run perspective, you can’t do it day-by-day,” said Mr. Kudlow, who served as The Trump Campaign’s senior economic adviser.
“You are seeing a surge of profits. Profits are the mother’s milk of stocks, they increase the value of shares and the indexes that house those shares,” said Mr. Kudlow, who worked as President Ronald Reagan’s budget deputy between Y’s 1981 and 1985.
Larry Kudlow applauded President Trump’s continued elimination of excessive government regulation.
“Give Trump some credit, Trump is ending Obama’s war against business. Obama had a war against business. Obama had a war against success,” he said. “Rolling back regulatory costs is a huge plus and Trump has done this and never gets enough attention,” he said.
Note: Wall Street wisdom says, ‘Buy the dips in an up trend.”
Friday the US major stock market indexes finished at: DJIA +66.71 at 22092.81, NAS Comp +11.22 at 6351.54, S&P 500 +4.67 at 2476.79
On the week, the DJIA climbed 1.2%, the S&P 500 rose 0.2% and the NAS Comp shed 0.4%.
Volume: Trade on the NYSE came in at: 785-M/shares exchanged.
- NAS Comp +18.0% YTD
- S&P 500 +10.6% YTD
- DJIA +11.8% YTD
- Russell 2000 +4.1% YTD
|HeffX-LTN Analysis for DIA:||Overall||Short||Intermediate||Long|
|Very Bullish (0.54)||Very Bullish (0.52)||Very Bullish (0.56)||Very Bullish (0.54)|
|HeffX-LTN Analysis for SPY:||Overall||Short||Intermediate||Long|
|Neutral (0.17)||Neutral (0.09)||Bullish (0.44)||Neutral (0.00)|
|HeffX-LTN Analysis for QQQ:||Overall||Short||Intermediate||Long|
|Bullish (0.28)||Bullish (0.39)||Bullish (0.27)||Neutral (0.17)|
Have a terrific weekend.