October Opens with a Huge Switch from Small-Cap to Big-Cap Stocks

Excerpt from Louis Navellier's Marketmail - 10/09/2018

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We remain in a nervous “mean reversion” market, since many previously-hot small-capitalization stocks consolidated last week (after being strong in the last week of September), while big multinational stocks firmed up. Specifically, Bespoke Investment Group broke down the S&P 1500 by 10 deciles of market capitalization. The 150 largest (top 10%) rose 0.08% last week while the smallest 10% were down 3.74%.

The S&P 500 fell 0.97% last week, but the Nasdaq 100 was off 3.2% and the small-cap Russell 2000 fell 3.8%. Small-cap growth was down -4.58%. Among the sectors, Consumer Discretionary, Technology, and the new Communication Services sector were hit hard, while Energy, Financials, and Utilities rose.

I’ll cover more about the market’s “reversion to the mean” in my closing column this week, or you can hear my analysis of the market’s latest downdraft in a podcast on our home page: https://navellier.com

In This Issue of Marketmail (Click Here to Read)

Bryan Perry opens with the good news on the economic front, along with the dangers and opportunities in the latest rise of 10-year Treasury rates above 3.2%. Then, Gary Alexander looks at Europe’s economic and banking malaise and finds they haven’t truly recovered from the 2008 financial crisis. Ivan Martchev is more concerned over the emerging market currencies, once the dollar resumes its inexorable rise, than he is over the latest U.S. bond moves. Jason Bodner covers the latest sell-off and sector swings along with a look at the media’s false narrative vs. the longer-term realities driving this bull market. Then I’ll return to cover the commodities, notably oil, and the premature release of the likely-lowball monthly job totals.

Income Mail:  

The “Too Good to Be True” Economy (According to Fed Chair Powell)

           By Bryan Perry

The Bond Market Bends on Latest High Yields


Growth Mail:  

Europe May Be Entering its Third Stagnation in a Decade

           By Gary Alexander

Why Europe Can’t Seem to Recover from 2008


Global Mail:

No Time for a Big Bond Bear

           By Ivan Martchev

U.S. Dollar Rally Soon to Accelerate


Sector Spotlight:

An Unexpected Bill Comes Due

           By Jason Bodner

The Three Main Drivers Behind This Choppy Market


A Look Ahead:

A “Mean Reversion” Pushes Commodities Up & Stocks Down

           By Louis Navellier

Can’t Anybody Around Here Count Jobs Right?