Tag Archives: LUV
Tough break! We were prepared for a minor pullback this week, but stock prices took a surprisingly hard knock after the Fed’s rate cut Tuesday disappointed some market players.
Will rising interest rates upset Wall Street’s applecart? In recent weeks, a sharp back-up in bond yields (which lifts borrowing costs for businesses and consumers alike) has given stock traders a case of the jitters. Is this the straw that will crack the bull’s spine? Or is it just another passing tremor?
I won’t keep you guessing. I don’t think this latest interest rate scare will derail the stock market’s advance for long. However, it’s also clear to me that the rate background is slowly shifting, worldwide, with major implications for stocks, bonds and a whole bunch of other investments.
In this month’s visit, I’ll show you what those implications are. Hint: It’s more crucial than ever to demand bargain prices—not just “fair” prices—for the stocks and mutual funds you buy. A value-plus-safety strategy like ours is tailor made for the new financial world we’re heading into.
Time for a quick nap! Stock prices rolled ahead this week, making it four weekly gains in a row for the blue chip S&P 500 index. We’re expecting even more new highs down the road. But first, the market could use a little rest.
Pole vault! Stock prices continued their breathtaking leap this week, with the both the Dow industrials and the broad-based NYSE Composite Index closing today at another new all-time high.
Well, it doesn’t get much more astounding than this! Just a month ago, the Wall Street smart set was clucking about a global stock market meltdown. And today, European stocks closed at a six-year high, while back in the USA the S&P 500 closed within a half of one percent of its own multiyear high.
So it finally happened. The stock market’s Energizer Bunny keeled over. All right, what now?
Legions of investors are groping in the dark, unnerved and uncertain of their next move. Not you and I. We were expecting a timeout for the bull—and we’re taking full advantage of it.
In this month’s visit, I’ll show you how to use the recent unsettled market conditions to fine-tune your portfolio for greater profits. Bargain-priced stocks are popping up all over, including two blue chip stalwarts from our model portfolio that now offer potential returns of 20% or more in the coming year with much lower risk than normal.
I’m also warming again to global investing (a very successful theme of ours in the past couple of years). After a brief absence, we’re back buying China and India, the two most powerful growth engines of the developing world. If you prefer a more diversified approach, I’ve got a pair of globetrotting mutual funds—both among the best in their class—that will take you anywhere you could want to go.
Let her down gently! Stock prices backed off this week, digesting part of last week’s powerful gains. We’re impressed with the market’s resilience. Even though we expect some further bottom testing during April, this “correction” is proving unusually gentle by historical standards.
Take a deep breath and relax! Stocks clawed their way back this week, with the Dow and S&P posting their first weekly gains in three weeks. It’s now clear that the crash the bears were hoping for just isn’t going to happen.
Don’t miss the Big Picture! Stocks churned this week, with the Dow and S&P pulling back while the NASDAQ advanced. Chances are, March will bring a more significant dip than we’ve seen in recent months. Make no mistake, though. The minor weakness ahead will spell a major buying opportunity.