Daily Talk

Enjoying the Employment Surprise

July 8, 2017

We kicked off the second half of 2017 with a holiday to celebrate America’s greatness and a jobs report whose headline number knocked the cover off the ball. Prior months have been revised higher as well. In June, 222,000 new jobs were added versus the consensus estimate of 174,000. That’s huge. Sure, the nation can do a lot better, but the Street was bracing for a much lower result.

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Nothing But Garden Variety Consolidation

June 30, 2017

Yesterday was another difficult session for the market as strength in banks and energy couldn’t offset the selling pressure. The S&P 500 and Dow began higher and it looked as if new records would be established across the board. But then it all went south. There are several theories on why the weakness started, and we’ll talk about those in this latest article

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P Still Has Fundamental Obstacles to Face

June 29, 2017

On Tuesday, Pandora (P) announced that co-founder and current CEO Tim Westergren will be stepping down as well as vacating his seat on the board of directors. Westergren helped found the company 17 years ago and had only returned as CEO a little over a year ago. The company made several changes but at the end of March it still had just 4.7 million paying subscribers compared to Spotify’s claims of 50 million.

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The YOLO Effect

June 23, 2017

According to a recent Harvard study of our daily activities – such as our thoughts and feelings – we are the happiest when we live in the moment and the unhappiest when we are working, resting or using a home computer. So that means that activities like reminiscing, thinking ahead and daydreaming make us miserable even if we are thinking about something pleasant. Ladies and gentlemen, we have all entered what the millennials have termed YOLO.

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Infrastructure Week Opportunities: CAT, VMC, MLM

June 17, 2017

Last week was great for the Trump Trade. The White House even touted it as Infrastructure Week. President Trump has become more focused in the last couple of weeks, and it’s paying off big time. Not only is he pursuing pro-growth policies, but he’s also slashing and trashing all those Obama-era regulations. His heartland growth agenda sparked numerous rallies, most notably in infrastructure after he discussed the important of a first-class system that would allow our economy to flourish.

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Buying the Dips

June 16, 2017

The market may look dull and uneventful on the surface – trading is pretty flat today – but yesterday was an exciting session that speaks to the economy and the Trump agenda. All the major indices closed in the red, but that’s not the real story. Instead, it’s the fact that the Dow, S&P 500 and NASDAQ finished higher than their opening trade for the session. That’s a major sign that a bottom is developing. This is the time to take advantage of depressed prices and buy on weakness.

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A Runaway Breakout

June 9, 2017

There are several narratives playing out in the market right now, but the overarching investment theme is the runaway breakout. Some of you may be familiar with what I like to call a true breakout, when stocks and indices move into all-time high territory on strong volume. Oftentimes those true breakouts turn into runaway breakouts, which means that the upside never stops – or at least not until we see a mind-boggling move higher.

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Trade of the Day: NTAP

June 9, 2017

Cloud computing and data storage companies have traded well as a group for more than a year now. Just look at the First Trust Cloud Computing ETF (SKYY), which is up more than 30% in the last 12 months. I’ve traded a few related companies in that time, and one I currently recommend is NetApp (NTAP). Looking at the year-to-date chart (below), a few things jump out at me. We’ll talk about those in this latest Trade of the Day.

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UNH Is a Strong Investment Even at All-Time Highs

June 8, 2017

As those who invest with me know, I focus a lot of my strategy on owning great American companies. I believe this is the best way to build long-term wealth, and now is a great time to be buying these kinds of companies. One such name I’d like to talk about today is UnitedHealth Group (UNH), the nation’s largest health insurer. The company is based in the United States and also provides pharmacy, primary care and data services.

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TOL Hints at a Strengthening Economy

June 5, 2017

It’s no secret that I am a major proponent of the notion that traditional family formation is the most important long-term driver of the economy. There has been exhaustive data on this subject. The question now is whether Americans return to more secular traditional values such as marriage, which speaks to a formula of greater peace, prosperity and happiness. It comes down to a lot of things, but right now all signs point to a reversal of future on the family formation front. And in that case, it’s time we gain exposure.

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