Excerpt from Louis Navellier's Marketmail - 2/20/2019
The stock market celebrated last week over a bipartisan budget deal reached on Tuesday, making another federal government shutdown unlikely, despite the fact that the President was not happy with the resulting agreement. Like most such Congressional bipartisan agreements, both sides were somewhat perturbed, especially since the President subsequently declared a “state of emergency” to fully fund his border wall.
Furthermore, it continues to be widely reported that the Chinese trade negotiations are proceeding well enough that the new tariffs that were to be imposed on March 1st will not be implemented. With the China trade deal fears largely dissipated and a shutdown off the table, the stock market staged a big relief rally.
Speaking of politics, if you are looking for something to worry about, Britain’s March 29th exit from the European Union (EU) is shaping up to be a potential disaster for both the British pound and the euro. Ironically, Brexit uncertainty is good for the U.S., since the U.S. dollar is the beneficiary of international capital flight, which continues to suppress Treasury yields. In my management company’s top-rated ETF portfolios, we are invested in two Treasury ETFs staggered along the yield curve.
Ironically, the last time our top-rated ETF portfolios were parked in Treasuries was 2016, when we sold Treasury ETFs the day after the surprising Brexit vote that caused the 10-year Treasury yield to plunge to 1.36% in a global flight to quality. We hope to profit from Brexit again if Treasury yields move lower.
Bryan Perry says the market is ignoring some pretty huge debt numbers, as well as calls for a market “retest.” Gary Alexander looks at 80 years of Presidential election cycles and sees a good chance for a double-digit market gain this year. Ivan Martchev takes a deeper look at a stock we don’t like much, Tesla, while Jason Bodner reviews the growth-oriented sectors leading this recovery. Then, I will return to analyze some recent positive trends in the political landscape and the Fed’s new inactive policies.
Income Mail: Calls for a Market Retest are Falling on Deaf Ears
By Bryan Perry
The Market is Ignoring Massive New Debts – For Now
Growth Mail: Expect Another Double-Digit Pre-Election Year Market Gain
By Gary Alexander
Handicapping 2020 – Waiting for the “Adults” to Arrive
Global Mail: Is Tesla Ripe for a Fall?
By Ivan Martchev
Model 3 or Die
Sector Spotlight: It Helps to Be Both Good AND Lucky
By Jason Bodner
Growth Sectors Continue to Lead the Pack
A Look Ahead: America is Finally Looking Forward, Not Back
By Louis Navellier
The Economic News Continues to Argue Against Rate Increases