July 8, 2017
Weekly Market Outlook
By Keith Schneider
Despite the meager outcome from the G 20 meeting with some calling it a G19 as the US retreats from the world stage, US equities shrugged off the global disappointment. Stocks stabilized, ignoring the larger than normal riots usually accompanied by such gatherings. Semiconductors and the Transportation sectors led on Friday.
Just before the talks ended, France’s new leader, Macron stated, “Our world has never been so divided. Centrifugal forces have never been so powerful. Our common goods have never been so threatened.”
Trump seemed not to care and alluded that he might skip the festivities next year.
One noticeable shift in terms of liquidity flow is that the movement into European equites peaked just after the French election. Money is currently finding a home in Emerging Markets and South Korea.
In fact, according to our proprietary indicators, our country model has South Korea in a top slot. (for more on our Country Plus Model https://marketgauge.com/trading-ideas/etf-country-plus-strategy/ )
Investors don’t seem to mind that they are in the front lines in should a confrontation in the Korean peninsula occur.
For those interested in investing with a contrarian mindset, a North Korean ETF is not available just yet. However, sources revealed that Dennis Rodham and his financial advisors are planning a North Korean ETF tentatively named BOMB. But, it will only be traded in a dark (cess) pool.
Us Equity markets continue to hang on to their bullish trends although with trepidation. Growth stocks as reflected by the Nasdaq 100 (QQQ) are still under pressure. The bigger macro picture shows that most Economic indicators are doing ok with unemployment hitting their lowest numbers in years. Chances of a recession remain minimal. Our Risk On indicators have all turned positive with safe haven utilities getting hit hard.