Excerpt from Louis Navellier's Marketmail - 9/17/2019
Last week delivered a relatively nasty rotational correction that punished the previous winners and rewarded some perennial laggards. In one of their excellent research reports, our friends at Bespoke Investment Group (BIG) put this trend more bluntly, calling the recent market gyrations a “Dash for Trash.” Their latest weekly Bespoke Report showed how August’s winners were often September’s big losers. For instance, small cap stocks and low P/E-ratio stocks rebounded impressively last week.
The truth of the matter is that these air pockets and rotational corrections are very common in September, which is a weak seasonal month. Fortunately, the Fed will be cutting key interest rates this week, and then quarter-ending window dressing should revive most of my powerful growth stocks, especially those that are characterized by strong fundamentals, such as rapidly rising forecasted sales and earnings.
Last week represented a reversal on many levels, creating several new buying opportunities. Bryan Perry isolates one such opportunity in specific REITs. Gary Alexander covers the historical benefits of today’s gridlock in Washington, while Ivan Martchev analyzes who may benefit from last week’s drone strike on Saudi oil facilities. Jason Bodner sees new and unusual buying activity in most S&P sectors, while I see an escalating war of words between the President and the Fed in advance of this week’s FOMC meeting.
Income Mail: Bond Buyers Get Buffaloed by Renewed U.S. Optimism
By Bryan Perry
Correction in Hot Growth REITS is a Buying Opportunity
Growth Mail: September is Strong So Far (Especially in Small Caps)
By Gary Alexander
Happy 232nd Birthday, U.S. Constitution
Global Mail: Who Benefits from a Saudi Oil Drone Strike?
By Ivan Martchev
Implications for Bond Prices If There is a Military Escalation
Sector Spotlight: When the Facts Change, We Change…Fast
By Jason Bodner
What a Buying (or Selling) Surge Looks Like
A Look Ahead: President Assaults Fed “Boneheads” For Not Cutting Rates to “Zero or Less”
By Louis Navellier
The Economic News Turns Positive, Making a 0.50% Rate Cut Highly Unlikely