Record INFECTIONS…Record S&P 500

Worldwide infections for COVID are at record highs, as is the S&P 500. The RUSSELL 2000 (Small Cap index) is still lagging behind its November 8th high, but that’s where I continue to see the greater opportunity.  The “riskier” Small Cap stocks and those favored from an eventual global reopening present the best growth opportunitiesContinue reading “Record INFECTIONS…Record S&P 500”

FED new policy…same as the old policy

I know it’s fashionable to be worried about the stock market.  I’m not. One of the main emotional drivers is that the Federal Reserve has tightened its monetary policy and that interest rates are going up. Attached is a chart of the FED Funds rate going back to 1954.  The RED line indicates estimated interestContinue reading “FED new policy…same as the old policy”

Black Friday Stock Market SELLOFF…an early Christmas present

If you’re concerned about the Black Friday stock market selloff, then take a deep breath and consider the following: For the past 21 months, the Media has vacillated between two mutually exclusive narratives- COVID would squelch demand and thus crash the stock market. Inflation would cause the FED to raise interest rates, which would squelchContinue reading “Black Friday Stock Market SELLOFF…an early Christmas present”

RUSSELL2000 dips below 200dma

For the first time in over a year, the RUSSELL 2000 (Small Cap Index) broke below its 200 day-moving-average.  The insolvency of Evergrande (China’s second largest real estate developer) is being blamed for the calamity, but I don’t think there will be a contagion.  China’s problems are much larger than Evergrande, and I believe theContinue reading “RUSSELL2000 dips below 200dma”