Solid Reasons for Optimism Despite October's Shaky Start

Excerpt from Louis Navellier's Marketmail - 9/24/2019

Subscribe to Marketmail

Screen Shot 2019-10-08 at 7.30.48 AM.png

Despite two straight daily declines and all the Doomsday headlines in the middle of last week, the S&P 500 only declined 0.33% last week, while NASDAQ gained 0.54% and many highly rated stocks rallied. This relative strength in quality stocks is encouraging as we approach third-quarter announcement season.

On my Tuesday podcast, I stressed that we are now in the seasonally strong time of the year, while on my Wednesday podcast, I stressed that there are a lot of reasons to be excited, including a potential Fed rate cut in late October. Another source for hope is that our friends at Bespoke Investment Group (BIG) issued a great report that showed how after a 1% decline in the S&P 500 on the first day of the fourth quarter, the average gain for October averaged 3.75%, and the gain for the rest of the quarter averaged 7.22%.

In This Issue:

On the verge of China/U.S. trade talks, impeachment inquiries began, throwing the country (and market) into turmoil, but Bryan Perry still sees a chance for progress in facing down China’s long-time business practices. Gary Alexander surveys some notable long-term economic progress, drowned out by negative press coverage. Ivan Martchev shows why crude oil isn’t rising, despite disruptions in the Middle East, due to a global slowdown, but the junk bond market still says there is no U.S. recession in sight. Jason Bodner shows how some big funds got mauled by sharks in feeding frenzies in late summer volatility but sticking to fundamental analysis and watching the big money traders continues to pay dividends. Then I’ll close this week’s issue with a look at the tensions in Hong Kong and some key U.S. economic indicators.

Income Mail: Impeachment Inquiry Puts Pressure on Any China Deal

By Bryan Perry

Time to Reset How China Does Business in the U.S.

Growth Mail: The Economic Miracle Continues…But Bad News Drowns It Out

By Gary Alexander

When Will the Next Recession and Bear Market Begin?

Global Mail: More Signs of Trouble in the Crude Oil Market

By Ivan Martchev

Crude Implications for the Junk Bond Market

Sector Spotlight: The Market Undergoes Periodic “Feeding Frenzies”

By Jason Bodner

Some Big Funds Got Mauled by Sharks Last Month

A Look Ahead: Communist China Turns 70 as Hong Kong Struggles to Stay Free

By Louis Navellier

Mixed U.S. Economic Statistics Send the Market Down (then Back Up)