Excerpt from Louis Navellier's Marketmail - 09/11/2018
The S&P declined each day of the holiday-shortened first week of September, but it only fell 1% in all. That’s nothing to worry about, but the bears were out in full force warning about the potential of a September crash, especially in light of the upcoming 10th anniversary of the 2008 financial panic. We may indeed have a “flash crash” or a normal correction, but I expect we’ll see quarter-ending window-dressing and ETF rebalancing, which typically benefits stocks. At the same time, the Fed will likely raise rates on September 26th and then issue a “dovish” statement, which should boost the market as September ends.
Then, beyond September, we have the year’s strongest quarter to look forward to. October in the past 20 years has been seasonally strong. Furthermore, forecasted third-quarter sales and earnings are expected to remain strong, thanks to 4.4% estimated GDP growth, so “peak earnings momentum” has yet to arrive. I expect wave after wave of strong announcements to propel stocks higher in October. I also expect the market to rally after the mid-term elections in early November, regardless of the results, since most of the political distractions will finally be over. Finally, as Thanksgiving nears, typically an early “January effect” commences as small-to-mid capitalization stocks tend to end the year on a strong note.
In Income Mail, Bryan Perry focuses on the Fed’s favorite yield curve measure, which indicates more shelf-life in this economic recovery and bull market. In Growth Mail, Gary Alexander looks at the added caution evident among most investors as well as “Gen-Z” youth in their savings after the trauma of 2008. Ivan Martchev returns to the precious metals market to examine the “great gold/silver divergence,” as well as the sagging mining stock sector. Jason Bodner’s Sector Spotlight contrasts the yin-yang of weak sectors winning in down weeks while strong sectors still dominate the year-to-date gains. Then, in the end, I’ll return with my answer to the latest doomsday theory, the coming “Great Liquidity Crisis.”
Bulls Find New Catalyst to Bankroll More Gains
A Better Interest-Rate Indicator Gives the Bulls a Green Light
by Bryan Perry
The Trauma of 2008 Created More Cautious Investors
Economic and Market Fundamentals are Still Strong
by Gary Alexander
The Great Gold/Silver Divergence Continues
What Mining Stocks are Telling Us
by Ivan Martchev
A Week of Worries Assaulted Investors Once Again
Get Prepared Now for a Strong Fourth Quarter
by Jason Bodner
Are We Headed for A "Great Liquidity Crisis"?
Unlike 2008, We're Nowhere Near a Recession
by Louis Navellier