Can Tesla Catch Facebook?
Small Caps Rebound This is low volume trading at the end of the year which doesn’t mean much. Obviously, if you are taking profits and buying stocks, the prices are real, but we shouldn’t use this action to make conclusions about how January will go. As you can see from the chart below, the MSCI […]
Energy Could Dominate 2021
Q4 GDP Growth Estimates The Chief Economist at RSM, Joseph Brusuelas, raised his Q4 GDP growth estimate from 2.7% to 4.8% on Wednesday because of November’s trade and inventory data. Remember, even though the quarter is over, only about 2/3rds of the data is out, so we have a lot of room to go until we […]
2020 Hindsight Brings Out the Foresight to Hedge into 2021
As we approach the turn from 2020 to 2021, option traders are looking to major market index ETFs to hedge. Many look at the new year as an opportunity to set goals for redefining themselves physically, spiritually, financially, etc. A rebirth! However, how many aspects of our current circumstance will be suddenly absolved in 2021? […]
Almost A Correction In Small Cap Growth
Are We In A Correction? It sounds silly to ask if we are in a correction because the S&P 500 is 22 basis points off its record high with its decline on Tuesday. However, it’s not asking if we are in a correction in large caps. It’s asking if we are in a correction in […]
High Frequency Economic Data Tanks
Same Store Sales Growth Jumps Redbook same store sales growth is indicating there was an upturn in spending in the 2nd half of December which is interesting because most indicators have been weak. You’d think there was more weakness in the end of December because the virus spread as the month progressed. The vaccines have only […]
A Magic Formula for a New Year
As we stare down the end of 2020 and welcome 2021, you may be looking for some magic formula to use in your investing. If you are, you are in luck, at least in name only and possibly more. This is a simple fundamental formula for investing developed by Joel Greenblatt in his 2006 book, […]
Monster FANG Rally To End The Year
Another Santa Rally The stock market usually does well in the week between Christmas and New Years Day. The fact that we got a stimulus during this week made the rally even stronger (S&P 500 was up 87 basis points). Plus, many investors probably don’t want to sell because they would rather pay taxes next […]
President Trump Signs The Stimulus. Will There Be More?
Traveling Growth Increased We have two trends starting. They are the vaccine going out to more people and an increase in mobility. The increase in mobility will definitely feed off the increase in vaccine distribution because people will feel safer. It’s a good sign people are willing to go back to normal, but it could […]
Was the Bitcoin Halving Last May a Third Turning?
If you’re not familiar with Bitcoin, you may not know about a major event that occurred last May when it went through its third halving. That means the block award paid to Bitcoin Miners was cut in half from 12.5 Bitcoins to 6.25. The reduction in the award is reducing the supply of Bitcoin just […]
Holiday Spending Plot Twist As Traders Buck Data
According to Mastercard SpendingPulse, online spending for the expanded holiday season from October 11 to December 24 increased 49% from last year. That’s a significant but not exactly surprising shift from traditional brick and mortar, in-store spending. The online spending realities helped lift Amazon, Inc (NASDAQ: AMZN) nearly 4% on Monday. While shoppers shopped early […]