S&P Testing December Highs

“While market sentiment is showing signs of improvement, the biggest hurdle for stocks remains the Fed. There appears to be a disconnect between improving market action and an aggressive Fed that appears determined to keep hiking rates until inflation is finally brought under control. In addition, inverted yield curves continue to predict the likelihood of an economic recession which would be negative for stocks. At such times, technicians need to rely more than ever on market charts to help determine likely market direction. The next big test will come after next week’s Fed meeting. And how stocks react to what the Fed does and says about its future intentions.” – John Murphy

Sector Rotation – Remains Bearish

Energy leadership and technology weakness is usually a bearish sign. So is weakness in economically-sensitive consumer cyclicals. All of this suggests that stocks remain in a bear market.

The fact that stocks show no signs of a major bottom also argues for a weaker economy and a likely recession.

Stocks in Latin America – Outperforming in 2022 ?!

It has been a very challenging year for US stocks and elsewhere around the world. However, a bright spot exists: Latin America is an upside outlier. Yes – Latin America. And this comes after a collapse of more than 70% between early 2008 and the trough at the start of the pandemic. The rally is being driven largely by commodities. ILF – iShares Larin America 40 ETF is up nearly 9% year-to-date. Now, fourteen years after the all-time record was set for the MSCI regional benchmark, the market is finally starting to show signs of life again.

Top Consumer Staples

A number of Consumer Staples stocks are overvalued and stand to benefit from a bear market or recession. Their fundamentals, attractive valuations, and earnings are driving catalysts in outperforming inflationary levels.

What is a Target Date Fund?

Stated simply, a target date fund is an investment vehicle used to manage investment risk over a long-time horizon.

Is Tesla a Good Long-Term Investment?

I predict consumers will stay loyal to their existing brands as the market goes full EV in the coming decade. Manufacturers will force the switch. There won’t be an option. What I mean by that is that all new cars being offered will be fully EV at some point. And, at that point, I do not foresee a huge shift of people switching from their existing brand to Tesla. I’m talking about the late adopters, here.

ARK Investment

Should I Invest in ARKK?

The selloff is NOT a long-term problem, however, for the sector. And that’s why ARKK is a great opportunity currently. Now is a great time to invest in ARKK.

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