“At the bottom, stocks will be cheap and no one will care.” ~Bob Farrell “When it’s time to buy, you won’t want to!” ~Walter Deemer If you would like to watch the State of the Market video, please click the provided link. Have a great trading week everyone and be on the lookout for this…...
Cross-asset Strategy: The equity market sell-off is overdone in our view, and we reiterate our call to buy the dip, particularly in cyclicals and small caps. Stocks are in bear market territory and erased their post-pandemic re-rating, small cap valuations are at 20Y lows, and investor sentiment is bearish. Many market metrics such as recent…...
Research Report Excerpt #1 The data remains our guidepost (S&P 500 forward returns after falling below 200-DMA above table), which was a message also highlighted in Fed chairman Jerome Powell’s press conference this past week. So I ask of you, “If the Fed remains data-dependent, then why shouldn’t you? Furthermore, if much of the pessimism around…
“If falling 10% in stocks over a couple weeks is too much volatility for you, then being up 25% in 2021 is also too much. You can’t have one without the other. Consistency isn’t measured in the footsteps we take, but rather in the endurance of our journey.” ~Burt White Many of you may have…...
“An investor’s job is not to avoid the pain but to endure it.” If you would like to watch the weekly State of the Market video, please click the provided link. Have a great trading week and be on the lookout for our weekend Research Report this Sunday! Corrections will test investors’ will and…...
With the Fed’s pivot now well understood and appreciated, investor attention now turns to growth which is slowing faster and more than expected. Defensives have been leading since mid-November, and that’s likely to continue until PMIs and earnings revisions trough. Winter is here…Investor attention should now turn away from the Fed and to the Ice…...
Research Report Excerpt #1 In order for drawdowns to not become realized losses, sometimes we also have to elongate our time frame. You’ll find that to be the case when markets come under pressure, as they have in 2022. This is obviously not a new concept, but a concept that many traders and investors haven’t…
It is not often that Finom Group is tasked with delivering a pessimistic interim outlook, but technicals are delivering signals that traders and investors shouldn’t ignore. Seth will walk us through some of these technicals while offering some suggestions on how to manage through the present market environment in a bit. For now, I’ll be…...
“Buying on red days is where longterm profits begin! 90%+ of investors/traders are dedicated to finding problems in a market that goes higher ~75% of the time! Don’t get caught in the problem-finding game or your psychology won’t let you see anything but problems; you’ll always be playing catchup. Build resources, not roadblocks to capital…...
Our new Fed forecast simply brings forward our call for lower equity valuations and raises the risk in the first half of the year. The median stock remains expensive even though the most egregiously priced stocks have corrected. Focus turns back to earnings for picking winners from here. New Fed forecast means valuation reset happens…...
