Archives: Weekly Market Outlook

MONEY

Keith Schneider | January 10, 2021

“It’s a Gas. I am in the High Fidelity, First Class Traveling Sect and I think I need a Lear Jet” - The song "Money" by Pink Floyd “Money can’t buy happiness, But it sure can rent it for a while” - Kim Gruenenfelder “Never Spend Your Money Before You Have Earned it” - Thomas Jefferson Our focus this week on how money serves several purposes. One, we want to highlight what is going on


A Whacky, Strange But Profitable Year

Keith Schneider | January 3, 2021

One that I think we all might want to put in the “rearview mirror” although looking back we have nothing short of 20/20 vision.   After COVID 19 made itself known in early January, lockdowns in March sent investors into a quick bearish market only to be surprised just two months later as a new Bull market was launched.  Very few, if any prognosticators expected the kind of big returns we witnessed among most asset classes.


A Commodity Super Cycle looks Underway

Keith Schneider | December 20, 2020

Equity markets continue their bullish tear closing positive on the week and once again led by Grandpa Russell +2.5% (IWM). This is being partially fueled by the prospects of the passing of a long-awaited stimulus package in tandem with the optimism from the COVID vaccine rollout and seasonal (holiday) optimism. However, the pending stimulus package in conjunction with the Government’s easy monetary policy is pushing the dollar down around the globe and creating some big


The Rotation Continues

Keith Schneider | December 13, 2020

US Equity Markets digested recent gains with Grandpa Russell from The Modern Family (IWM) bucking the recent correction in the NASDAQ 100 (QQQ) and the S&P 500 (SPY). Leading FAANG+ stocks are losing momentum and ripe for more selling. To us, it appears that there is a combination of sector rotation, changing style bias (Value vs. Growth), and some tax selling taking hold of the markets. While December, especially mid-month to the New Year has


Is the Dollar Down for the Count?

Keith Schneider | December 6, 2020

The dollar is crumbling, US Long Bonds are teetering, inflation is bubbling, and equities globally seem quite content, or for that matter, thrilled. US stocks closed on all-time highs, and many foreign markets did even better this past week Most noteworthy are the new themes that are taking hold. The first one is that US equity leadership has passed the baton to foreign markets, which have had the most impressive gains recently on a relative


Inflation Coming without Gold?

Keith Schneider | November 29, 2020

US small cap stocks continue to show amazing relative strength and over the last six months and is one of the best performing stock indexes, up over 31%.The Small Caps were outperformed during this period by only South Korea and Taiwan, two countries that navigated the Corona Virus most adroitly. Most noteworthy is that the selloff in Gold defied inflationary moves in energy, industrial metals, and soft commodities. This shows markets believe that geopolitical stress


Bubble Trouble for Next 10 Years?

Keith Schneider | November 22, 2020

As the outcome of the presidential election is still being contested and the virus spreading to its highest levels since the initial outbreak, US equity markets mostly shrugged off this uncertainty with small caps gaining nicely on the week. This was partly spurred on by positive news regarding vaccines. Looking deeper under the hood, sector rotation out of utilities and consumer staples into retail and energy (each rallied over 5% for the week) was clearly


Moving on Up

Keith Schneider | November 15, 2020

The US presidential election looks like it’s pretty much over (except for the law suits) with Biden the victor along with the stock market. At this critical juncture, major thematic shifts are underway with a historic move from red hot growth stocks to more value stocks participating to mid and small caps taking leadership. For the week, Small Caps were up +6% while the Nasdaq 100 (QQQ) was down -1.25%, making this spread in weekly


Stocks Rally While the Dollar Slumps

Keith Schneider | November 8, 2020

Yesterday, November 7, the contentious U.S. Presidential election concluded with Joe Biden declared the victor by the Associated Press. Trump’s legal team is pressing on to disallow many mail in ballots across key battleground states to keep the presidency, but the odds makers in England say that Biden will assume the job and Trump's legal efforts will ultimately fail. However, the expectation of a change in U.S. leadership along with the prospects of no change


Pre-Election Jitters

James Kimball | November 1, 2020

Equity Indexes retesting the September Low amid growing volatility just ahead of a potentially contentious presidential election next week. 89% of stocks traded below their 10 DMA average on Friday. The market is still looking for another major round of stimulus/relief, but that has been delayed until at least after the election. Small and mid-caps have been holding up the best amid the recent sell-off with a slight shift from growth into value stocks. KRE