Back In The Saddle.
After a short hiatus from the blog writing business, it's time to check back in. What a market we have. Records are being set daily, stocks are jumping, and the news is less threatening. If you think that North Korea detonating a nuclear device is less threatening. Despite this, prices rose again today and once again the Dow traded into new high ground.
The composition of what's working in the market tells a compelling story. Large cap is leading but smaller cap stocks are starting to come on strong. Utilities have moderated after leading the market most of the summer and finally transports have awakened. It appears all the major market components are agreeing. Furthermore, analysis of industry sectors confirms this as consumer discretionary (retailers in particular) and financials are solid. Materials and energy (namely oil related) appear to be lost causes. Technology and telecom act well but are by no means leading the charge.
Chief concerns this summer included the health of the consumer and the financial stocks. Rates took a tumble so the banks are looking good, trading is up so the brokers look good, and insurance stocks trade at a premium (couldn't resist that one). And as rates fell, so did worries that the consumer could not afford their reset mortgages or would lose their ability to use their homes like atm machines. Just look at the retailers and you'll see stock after stock hitting new highs. Clothing retailers are strongest among the group.
Let's face it, if the economy was rolling over these stocks would not be gaining so much traction and moving so easily. What's behind it? Fear of a slowdown and the housing bubble was self fulfilling but investors were quick to take advantage of the bargains. It might turn lower but with rates at current levels and more talk of the fed laying off and possibly easing coupled with the oil market in a downtrend and we have the makings of a stronger stock market.
Please visit our website for more information on our investment philosophy and approach - www.gellercapital.com - or contact us directly at 914.683.5100.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this newsletter (article), will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Geller Capital Management, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. A copy of our current written disclosure statement discussing our advisory services and fees is available for review upon request.
The composition of what's working in the market tells a compelling story. Large cap is leading but smaller cap stocks are starting to come on strong. Utilities have moderated after leading the market most of the summer and finally transports have awakened. It appears all the major market components are agreeing. Furthermore, analysis of industry sectors confirms this as consumer discretionary (retailers in particular) and financials are solid. Materials and energy (namely oil related) appear to be lost causes. Technology and telecom act well but are by no means leading the charge.
Chief concerns this summer included the health of the consumer and the financial stocks. Rates took a tumble so the banks are looking good, trading is up so the brokers look good, and insurance stocks trade at a premium (couldn't resist that one). And as rates fell, so did worries that the consumer could not afford their reset mortgages or would lose their ability to use their homes like atm machines. Just look at the retailers and you'll see stock after stock hitting new highs. Clothing retailers are strongest among the group.
Let's face it, if the economy was rolling over these stocks would not be gaining so much traction and moving so easily. What's behind it? Fear of a slowdown and the housing bubble was self fulfilling but investors were quick to take advantage of the bargains. It might turn lower but with rates at current levels and more talk of the fed laying off and possibly easing coupled with the oil market in a downtrend and we have the makings of a stronger stock market.
Please visit our website for more information on our investment philosophy and approach - www.gellercapital.com - or contact us directly at 914.683.5100.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this newsletter (article), will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Geller Capital Management, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. A copy of our current written disclosure statement discussing our advisory services and fees is available for review upon request.
posted by David Geller at 6:19 PM
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