Excerpt from Louis Navellier's Marketmail - 8/27/2019
The S&P was up 1.2% last week before Friday’s -2.64% sell-off (matched by a 623-point Dow decline). A big reason for this volatility during the “dog days of summer” is that much of Europe and New York City is on vacation. Even central bankers go on vacation – up at Jackson Hole, Wyoming in the annual Kansas City Fed conference that started on Thursday. In his speech in the Grand Tetons, Fed Chairman Jerome Powell, as expected, signaled a coming 0.25% interest rate cut at the next Federal Open Market Committee (FOMC) meeting in September, which should have boosted the stock market going into the weekend, but unfortunately, President Trump took to his Twitter account at around 11:00 am Friday to mock Fed Chairman Powell’s dovish speech, while declaring both Chairman Powell and China as “enemies” of the U.S. Then he abruptly instructed U.S. businesses to stop doing business with China.
Specifically, President Trump tweeted that “Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA,” and added, “We don’t need China and, frankly, would be far better off without them.” Parallel with the stock market decline, gold rose $30 to another six-year high as the dollar index fell 1%. Yikes! Here is a link to a podcast I recorded Friday to decipher that day’s volatile market.
Bryan Perry has identified a specific sector set to grow rapidly over the next five years, namely the 5G tech sector. Gary Alexander lists five specific reasons why the current “inverted yield curve” phobia may be way premature and overblown. Ivan Martchev expands on that theme by examining the high-yield bond spread as well as the latest U.S./China rift. Jason Bodner takes time out for a moving personal story, which also ties in with the hidden undercurrent of market news, then I’ll close with a closer look at China.
Income Mail: There’s A Stealth Bull Market in The Making
By Bryan Perry
Once-in-a-Decade Technology Explosion - Retiring on 5G Technology Profits
Growth Mail: Five Reasons Why This “Inverted Yield Curve” is Likely a False Alarm
By Gary Alexander
Warring Central Bank Policies Artificially Inverted U.S. Rates
Global Mail: Junk Bonds Are (Yet Again) Not Worried
By Ivan Martchev
Why the Inverted Yield Curve is Not Completely Kosher
Sector Spotlight: Time Out for a Personal Story
By Jason Bodner
The Hidden Strength of Last Week’s Market
A Look Ahead: President Trump Declares Economic War on China…and the Fed!
By Louis Navellier
Growth is Slowing in Europe – Lowering Their Already-Negative Interest Rates