Friday Investment Talk: Chinese Consumers, E-Commerce, Space Exploration, Seasonality, Small Caps and Bitcoin Bubbles, and OZON
Fidelity is bullish on China. Goldman Sachs likes OZON. ARK’s Cathie Wood likes space exploration. But, seasonality does not bode well for markets in late January/February.
January returns weaken after options expiration Friday. Earnings season picks up next week, as a new US administration takes office. Expectations for a further rebound in stocks may already be baked in to consensus expectations.
The month of January has quite a bullish reputation among investors, but post election years tend to be weaker then others.
A rally in underperforming small cap stocks is likely during January. We highlight a few names of interest here.
Markets have hit the typical weak part of December right on schedule. Things should brighten for the bulls by Christmas. Copper has been strong and is entering a seasonally bullish time of the year .
December seasonality after the November jobs report can turn weak until the later part of the month. Buying positions in bullish sectors is useful during this period. Oil and energy stocks perform well, while gold and silver enter a weak period.
November is a very strong month for US equities, but in an election year it really shines for the SPX and DJIA. Its much weaker for tech and small cap stocks.
We take a first glance at Bank of America research on which sectors will benefit under the four possible election results in the US. Meanwhile, US sector rotation is visible. Investors are moving from technology to industrials. Emerging markets are holding up, also. Gold and Silver are flat. Barron’s highlights the possibility of Japan and Read more ➝
Next week starts the Jewish holidays and the relevant market adage, “Sell on Rosh Hashanah and buy on Yom Kippur” comes into play. Historically, the SPX was down roughly 58% of the time during this period.
October can invoke fear into investors as it is usually a weak month. However, October often marks the lows for the year. Stay diligent!