Best Time Since President Trump’s Election to Buy Stocks
$DIA, $SPY, $QQQ,$RUTX, $VXX
Savvy investors, sidelined and sitting on cash are setting up to come back into this market
The sell-off that started in October is a healthy correction in this Bull market and investors should continue to tune out the Noise.
The beaten down sectors are favorable, and the professionals will be deploying cash now and allocating it incrementally over the coming days and weeks.
Current conditions have the potential to create some of the best entry points into equity markets since President Trump was elected in November 2016,
The correction in tech stocks, stress in the corporate credit market and lowered hopes for a resolution to the ongoing US-China trade dispute fueled the sell-off over the past 6 weeks,
The S&P 500 fell 10% below its September record close Tuesday before clawing back just above that mark for the test that we have been waiting for.
We here at HeffX-LTN are not the only optimists
Analysts at JPMorgan Chase & Co. (NYSE:JPM) said last week the S&P 500 would recoup its October losses. But, Goldman Sachs Group Inc. (NYSE:GS) was less optimistic, recommending investors increase their cash positions in a note to clients Monday.
The US economic outlook is solid and the Fed will stay flexible. Plus, the deep decline in valuation multiples for previously high-flying tech shares suggest the worst of the sell-off may be over. They will come back.
Pundits and talking head talk concerning about a global growth slowdown are pulling down strong US growth and investor sentiment,tune out that Noise.
The bottom line in our opinion, as is Larry Kudlow’s is that an economic recession is not imminent, even though the financial markets over the last 6 weeks have been pricing the markets like the US is heading for one.
There trillions of USDs on the sidelines, and this market can reverse quickly.
Wednesday, the major US stock market indexes finished at: DJIA -0.95 at 24463.69, NAS Comp +63.43 at 6972.46, S&P 500 +8.04 at 2650.07
Volume: Trade on the NYSE came in at 777-M/shares exchanged
- NAS Comp +1.0% YTD
- DJIA -1.0% YTD
- S&P 500 -0.9% YTD
- Russell 2000 -3.1% YTD
HeffX-LTN’s US Major Stock Market Indexes Technical Analysis
To all of our subscribers and readers in the US, have a Happy Thanksgiving Holiday!
Latest posts by Paul Ebeling (see all)
- Secret Beaches - February 21, 2020
- Some of the Things That Make People Fat - February 21, 2020
- F1: Ferrari (NYSE:RACE); “The others are faster than us” - February 21, 2020