On the recent market decline, many high quality names were thrown out by investors like rotten apples at Whole Foods. A somewhat surprising name among them is IBM. While the chart of IBM was hardly dynamic in the weeks prior to the market's correction, the heavy and continued selling indicates that lots of big money, … Continue reading IBM, Babies And Bathwater
During this most recent dramatic sell off in the US equity markets, many heretofore invulnerable stocks were finally subject to some deserved profit taking. The cluster of dominant market stocks collectively referred to as the "FAANG" stocks, Facebook, Apple, Amazon, Netflix and Google, all sold off, some in the order of 20%, signifying to many, … Continue reading Pearls In The Panic
A group which has flown under the radar but which has nevertheless been relatively strong compared to the S&P index are a number of issues in the hotel group. While there are a number of hotels which are owned by ETF trusts and therefore more financial products than pure plays, there are a few which … Continue reading Hospitality And Hotels
Over the years, a new factor has emerged when attempting to measure investment suitability, which has little to do with balance sheets, forecasts or indicators. That factor can be generalized as the "social responsibility" component. We recall some of the original victims of socially correct investing which included tobacco and oil companies as well as … Continue reading The Sanctimony Factor
Five months following our annual forecast for the Dow Stocks, we show the 6 month period of subsequent activity in the grid of charts below (chart by StockCharts.com) While the details may be difficult to see, the salient point is only to observe which Dow stocks have performed well and which have lagged. The late … Continue reading Midyear (almost) Update
As postulated in our last post, the major stock indices have managed to claw their way back after the climatic sell off in February. While you can never be precisely sure about the reaction of markets after a dramatic move, historical precedent can provide clues as to what is likely to happen. In general, if … Continue reading Markets Continue to Advance: Search For Relative Strength
Following an extended period of prices steadily ratcheting higher, the stock markets finally collectively hit some wild turbulence. The speed and ferocity of the past week's decline was alarming particularly because over the past 2 years, people have been lulled into believing that a steady, low volatility advance was the new normal. In fact, it … Continue reading Now What?