INVESTMENT COMMENTARY & Outlook July 2023 The breadth and power of the overall stock market improved notably in the second quarter. At the end of April, only eight NASDAQ stocks accounted for virtually all the S&P 500’s year-to-date return. At the end of May, twenty stocks accounted for virtually all the S&P 500’s year-to-date return as breadth and power improved. Then the annual June Russell reconstitution caused many small cap stocks to surge as liquidity improved. [...]

INVESTMENT COMMENTARY & Outlook April 2023 The first quarter had some dramatic developments but finished on a positive note. Thanks to the Silicon Valley Bank crisis, Treasury yields plunged and will likely cause the Fed to stop raising key interest rates. Although the Federal Open Market Committee (FOMC) raised key interest rates 0.25% as anticipated, this could be the last key interest rates hike. At his press conference after the FOMC statement Fed Chairman Jerome Powell [...]

INVESTMENT COMMENTARY & Outlook January 2023 The fourth quarter started with several violent short covering rallies and helped to mark a definitive stock market bottom. Not only was October a strong month, but November also started on a positive note. The stock market temporarily lost its “mojo” in December after a hawkish FOMC statement and new interest rate fears emerged. The next Federal Open Market (FOMC) statement will be on February 1st, and we are anticipating [...]

INVESTMENT COMMENTARY & Outlook October 2022 The third quarter was supposed to end on a positive note since the Fed’s September 21st key interest rate hike was supposed to be the last big 75 basis point increase. Unfortunately, the Fed is also shrinking its balance sheet by $95 billion per month and driving Treasury yields higher, so the Fed has to continue to raise key interest rates to “catch up” with market rates. In fact, all [...]

INVESTMENT COMMENTARY & Outlook July 2022 Despite a horrible start to the year and all the talk about a recession, amazingly there is no “earnings recession.” The top-down strategists are completely out of sync with the boots on the ground analyst community, which is more positive. Frankly, the analyst community is smarter than the macro strategists that keep calling for a recession. As always, we are entering the second-quarter announcement season “locked and loaded” with strong [...]

INVESTMENT COMMENTARY & Outlook April 2022 The first quarter stumbled out of the gate, but finished strong during March’s quarter-end window dressing. The big change in the Navellier portfolios is that we have added companies we believe will profit from inflation to our portfolios. Specifically, energy, fertilizer, food, and shipping companies are more prevalent in our portfolios. These companies have pricing power and are benefitting from the stagflation that has enveloped the world in the wake [...]