Earnings season kicked off last Friday with the bank results. The numbers were stellar, but the stock prices of those companies fell hard. Since then, the same thing has occurred to any number of companies. What is going on?
At the Market
As of Friday morning, the S&P 500 Index has erased all the losses of 2018. That is despite threats of conflict with both Syria and Russia, a potential tariff trade war and concerns over America’s exploding tax-cut-fueled national debt.
This week, our fearless leader upped the ante on the tariff tiff with China. It went like this: Trump announced his list. China announced theirs. And at the end of the week, the president sees them one better. Aside from the volatility it is causing in the stock markets, not much besides headlines has been accomplished.
It has been a tough month for stocks and February wasn’t much better. Granted, it was a small price to pay for last year’s great gains, but, as in life, all good things must come to an end. Will April bring more of the same for us or can we hope for something better?
World markets declined again this week. Despite world condemnation, which included most of America’s economists and corporations, Donald Trump unilaterally forged ahead in implementing his own brand of protectionism. Investors fear the consequences.
Stocks rose and fell throughout the week as tariff fears spooked world markets. Steel and aluminum on the American side. Peanut butter and motorcycles from Europe. Who knows what China and the rest of Southeast Asia will throw into the teapot?
Donald J. Trump ✔@realDonaldTrump When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy! 5:50 AM – Mar 2, 2018 Stocks declined this week. This is a typical and largely expected reaction that should see the averages re-test the lows suffered in early February. Investors should understand that this is no cause for alarm.
After years and years of historically low interest rates both here and abroad, stock investors are suddenly paying attention to the day-to-day movements of the world’s bond markets. They may be getting a little too obsessive for their own good. This week, the Ten-year Treasury note and the equity averages moved hand in hand. As the yield on the U.S. Treasury moved higher, stocks moved lower. As the yield fell, stocks gained ground. This change in behavior is causing a great deal of needless volatility but I believe it is all part of the “normalization” process. That is a…
Stocks have had what is called a “V” shaped recovery this week. The indexes climbed every day at least one percent or more. Will it continue or…
Investors suffered through one of the worst weeks we have had in two years. Two out of the three main U.S. indexes have dropped by ten percent or more. Overseas, especially in Asia, some stock markets are down 12%. This waterfall-like decline is an opportunity to buy, not sell. There is nothing fundamentally wrong with either the economy or the financial markets. We are simply having the correction I have been waiting for these past months. Last Friday, I explained what triggered the decline—higher wage growth, which led to a spike in interest rates. But as the sell-off deepened,…
Better quarterly earnings trumped concerns of a declining greenback this week sending all the U.S. stock averages to yet more record highs. There appears to be no end in sight for this continued “melt-up” in the markets.
The U.S. government is scheduled to shut down as of midnight Friday, unless Congress and the President can come up with a stop-gap spending bill between now and then. Who cares?
It’s been the best two weeks for the U.S. markets in decades. Investors seemingly can’t get enough stocks in their portfolios, no matter how high the indexes climb. Ain’t it grand? Over the past few weeks, I have explained in detail that the stock market is in “melt-up” mode. You may think it’s crazy, or that the gains are a result of excessive exuberance. You may even be sitting there with your arms crossed, pointing your finger at me and predicting this is all going to end badly for investors. That’s fine, provide as many opinions as you like, but…
The Dow Jones Industrial Average gained a thousand points in a month. In just the first three days of 2018, all three U.S. averages hit consecutive record highs. Overseas indexes did even better.
The jockeys are lined up at the starting gate. The horses are champing at the bit. Bets are being placed on everything from the condition of the track to which horse will come in first, second, third and so on. Where will you be placing your bets in 2018 in the stock market derby?
You can’t say enough about a stock market that continues to climb, day after day, month after month. Best of all, it looks like it will continue to do so through the end of the year. What happens in 2018? Well, that may be a different story.