The Worst Has Been Priced In
This Cycle Has Been Speedy This cycle was put on hyper-speed. We had a bear market in a few weeks and a rally big enough to be considered a bull market in a week. Personally, I think the correct way to measure bull markets is for them to start after the previous peak is surpassed.…
Small Caps Fall 7.05% This Week
Small Decline This Week As Markets Cool Admittedly, any calls for calm came too early in this bear market. But this week the projection was finally correct as there weren’t as many wild swings. It’s interesting that even though the S&P 500 fell 2.08% this week, which isn’t that much. Especially considering the prior week’s…
Weak March PMIs & Jobs Report
Markit PMI Was A Disaster If the stock market wasn’t down much, there was no virus, and the Markit services PMI was this weak, we'd say sell stocks and brace for a recession. Services PMI fell from 49.4 to 39.8 which beat estimates for 39.1. Obviously, we are in an unusual time in which the…
Stocks Look To Be In A Holding Pattern
Stocks Seem To Be Stabilizing It looks like stocks are stabilizing right above the low of late March as investors wait to see when the number of cases in America peaks. It’s a reasonable stance because the market expects the data to get worse before it gets better in a couple weeks. Stocks can’t react…
Nearly Worst Labor Market Since Great Depression (It Took 2 Weeks)
Real Recession Numbers Are Here: They Are Ugly Labor market numbers are starting to come out. They are extremely bad. Let’s start with the March Challenger job cut announcements report. Keep in mind, the April report will likely be worse. Specifically, in March there were 222,288 new job cut announcements which was up huge from…
Commodity Prices Lowest Since The 1970s
Big Decline On Wednesday Stocks started the quarter on a sour note. S&P 500 fell 4.41%. If the market falls in April, that will be its 4th straight month of declines. We're not expecting a weak month because the uncertainty that is hurting the market will be lifted by the end of it. We will know…
Demise Of 2020 Earnings & When They Will Recover
Coming Earnings Decline A principle uncertainty in markets is when the number of COVID-19 cases will stop spiking in America. That helps investors figure out when the shutdowns will end and when the economy will restart. We need to know all this to determine where earnings will be in 2020. It’s easy to write off…
Worst Q1 Ever
Disastrous Quarter Ends With A Small Selloff This week has been calm so far. S&P 500 fell 1.6% and the VIX fell 3.54 to 53.54 on Tuesday. We can expect the VIX to fall even on down days. Panic can’t last forever. It is a short emotional outburst. If stocks fall, they won’t crash like…
Dividend Cuts & Spiking Unemployment
Dividend Cuts Coming Fast & Furious As of March 30th, 24 companies suspended their buyback programs in 2020 for a total of over $200 billion. Financials have led the charge with $127 billion in cuts. Financials probably have led the charge because of their energy loans. Obviously, the entire economy is in a recession, but…
Stock Market Recovery Continues
Another Rally Yes, technically Monday’s rally followed a decline on Friday. But the fact that stocks increased feels like we are in a winning streak since we didn’t get closer to last Monday’s low. S&P 500 has increased in 5 of the past 6 trading days. It just missed reversing the entire selloff on Friday.…