Watch Out for “Window Dressing”

Week of March 25, 2019

I fully expect to be holding 30% fewer stock names in the upcoming months as the market’s breadth and power decay after the 2019 pension funding season draws to a close and the first-quarter announcement season commences. Essentially, we are now entering a ‘funnel,’ which should cause more money to flow into stocks that post strong sales and earnings.

Watch Out for Quarter-Ending “Window Dressing” This Week by Louis Navellier March 26, 2019 We’re closing out a wonderful quarter this week, but, as last Friday’s action demonstrated, we must watch out for any quarter-ending “window dressing” this week,

as well as 90-day smart Beta ETF rebalancing. The catalyst for the Friday sell-off was the U.S. Treasury yield curve inverting on Friday, as the 10-year U.S. Treasury bond yield declined to 2.44%, while the 1-month Treasury yield remained… Read More

Stock Selection is Very Important

Week of March 18, 2019

The U.S. economy often suffers from slow economic growth in the first quarter, due to severe winter weather. Now that spring is coming, consumers’ moods should improve. The economic data in recent weeks has been encouraging, signaling that there is pent-up demand that should help GDP steadily grow in the upcoming months.

After a Rapid Recovery, Stock Selection is Very Important by Louis Navellier March 19, 2019 The S&P 500 has now risen 20% since its Christmas Eve low and the VIX (volatility index) is now at its lowest level since early October, when the stock

market peaked, and ETF arbitrage spun out of control. The Wall Street Journal had an interesting article last week entitled, “Riskier Stocks Are Paying Off.”  The article concluded that companies with weaker earnings are outperforming those with… Read More

Entering an “Earnings Recession”?

Week of March 11, 2019

The key for investors in the upcoming months will be to concentrate on dividend growth stocks as well as conservative growth stocks that are forecasted to post strong earnings momentum in a decelerating earnings environment. These stocks should continue to benefit from persistent institutional buying pressure in an increasingly narrow stock market environment.

Are We About to Enter an “Earnings Recession”? by Louis Navellier March 12, 2019 The bulk of fourth-quarter earnings have been announced and the average stock has posted a 5.7% sales increase and a 14.3% earnings increase – the fifth straight quarter

of double-digit earnings growth. Despite that great news, the S&P fell 2.16% last week as CNBC kept warning about a coming “earnings recession.” They are referring to the analyst community’s forecast that first-quarter 2019 S&P 500… Read More

Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. These commentaries are for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of a security. Please read important disclosures at the end of each Marketmail.