The month of August is usually one of the worst months of the year for US stocks. In years of a US presidential election (like 2020), August holds a special spot in the calendar for certain stocks.
Christopher Davies Tags: COVID, DJIA, dow jones, Elections, NASDAQ, Russell 1000, Russell 2000, S&P 500, Seasonality
Friday Investment Talk: Gaming Companies and TAM, Momentum Stock Sell Off, Hedging with ETFs, Natural Gas and GazpromAuthor: Christopher Davies Tags: ETFs, Gaming, Gazprom, GLD, Natural Gas, PSQ, QQQ, SLV, TAM, TTWO, UNG
RingCentral joined hands with Atos to market its products worldwide. The opportunity looks big according to 3 investment banks. The stock chart is set up for a break out.
Christopher Davies Tags: dividend, FAANG, Health Care, Seasonality, SPX, Tech
Are markets overbought? The narrow bull market in FAANG and some other technology stocks has led to concern among analysts that stocks are out of sync with the economy. We explore how interest rate assumptions affect analyst pricing in discounted cash flow models and lead to inflated asset prices. A discussion of the opposite case Read more ➝
Christopher Davies Tags: Coronavirus, DJIA, NASDAQ, NFLX, Russell 1000, Russell 2000, S&P 500
NASDAQ’s mid-year rally (described here in late June) came to an end on July 14. From mid-July, the second quarter is usually plagued with poor performance. Enthusiam and large amounts of cash on the sidelines could keep stock prices aflot. Hower, defensive positioning seems a more reasonable bet.
Christopher Davies Tags: dividend
Here we update our Dividend Investment Research (DIR) that we initiated in May. In review, our momentum approach involves an active management of ETFs. We run monthly screens that show the top performing stocks from each of 6 Dividend ETF categories. We focus on the top 5 stocks for investment, and would sell them if they Read more ➝
Christopher Davies Tags: Gold, RCL, russia
July remains bullish as low interest rates fuel stock returns and gold gains. Russia can be viewed as a high dividend value opportunity if oil prices can remain elevated, and natural gas prices stabilize. A note from Merrill Lynch outlines the demand for hydrogen fuel cells that support natural gas (UNG) prices. China continues to Read more ➝
Christopher Davies Tags: Brexit, COVID, SPX, Tech
As Europe reopens, UK’s BOE announces the economic recovery will be ‘V-shaped’. Tourist travel seems to be picking up and markets (especially tech stocks) reacted well – as is usual in this seasonal bullish period. Q2 earnings reports are on the horizon, with stocks priced for perfection.
Fiscal stimilus is ending in the US as government transfer reciepts and other forms of unemployment support expire. As elections come to the forefront and COVID cases increase further aid is likely. The effects on inflation will be muted until employment levels come back and wages increase.
Christopher Davies Tags: AGG, BND, GDX, GLD, IBB, IWM, IYT, NASDAQ, QQQ, SLV, SPX, XLI, XLP, XLU
July and the second half of the year have started off consistent with historical trends and patterns. The first trading day was mostly positive with S&P 500 and NASDAQ recording gains. However, July has historically been a month of transition with gains early and weakness in the second half. Meanwhile, three seasonal tredns start in July.