Bullish Indicators for US markets. News highlights deglobalization, but trends do not show the threat.
While the fundamental economic outlook remains positive for US markets, inflation and high stock multiples are wearing on investor sentiment. February could offer a reprieve for the market in the volatile mid-term election year.
With ‘stay at home’ COVID pet purchases fueling a frenzy in animal health products, this pet care delivery service boomed. On the ‘return to normal’ trade, the company has fallen out of favor, undeservedly so as growth is still robust and margins expand.
High debt levels and inflation create difficulties for investors in 2022. ‘Financial Repression’ could become a household phrase. Inflationary pressures will put certain sectors in the spotlight. We watch oil and gas exploration and production, consumer staples and real estate as places for outperformance. A quick look the Russian ETF (RSX) reveals its need to Read more ➝
COP26 hits Glasgow ushering in a chance for governments to change corporate rules on environmental policies. Accounting standards are one area of focus. Main issues include reducing emissions (adoption of EVs and reduction of coal industries), deforestation, diet change, and new tech for emerging markets. Clean Energy Tech ETF (ICLN) looks interesting as US small Read more ➝
The US outlined extensive ‘Clean Energy’ priorities that will create a magnitude of change in demand for metals and rare earth minerals, such as cobalt, lithium, copper, zinc, molybdenum, etc. China is a main supplier of many of these elements key in electricity production from wind and solar power. Politics and transport issues can create Read more ➝
Lumber falls. Communications stocks have juicy dividends. Fintech VC deals lead to exorbitant stock market listings. Sell signals arise in a seasonally weak period.
Hydrogen fuel technology companies are reviewed. Biogen stock looks vulnerable as FDA approval of its new Alzheimer drug attracts criticism. Stocks hit highs, but not very convincingly.
‘Sell in May’ critics are running wild this year. Meanwhile, bearish trends are usually strong in the next six months. Historically, these months warrant caution.
Last week, the MACD line on the two of the largest and well followed US Indexes rolled over to sell signals. This ends the bullish 6-month period through April.