Stocks Retreat on Escalating Tensions in Hong Kong and China

Excerpt from Louis Navellier's Marketmail - 8/13/2019

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Last week was another roller-coaster ride, but the S&P’s net decline was only 1% for the week, and just -4.5% from its all-time high on July 26. The big news was the ongoing protests in Hong Kong, which are casting a cloud over China and raising concerns about global growth. These protests have now become more violent, including petrol bombs by some rioters and tear gas by the riot police to disperse crowds.

Protestors congregated at the airport, knowing that the Chinese police would not use tear gas within the airport, but riot police stormed the airport last Tuesday to disperse the protestors. These protests are now hurting the Hong Kong economy, so it will be interesting to see how this fight over lost freedoms in Hong Kong will eventually be resolved. In the meantime, the Chinese military remains on the border and if they enter Hong Kong for the first time since just after World War II, the stock market will likely have an adverse reaction. Here is a link to a podcast I recorded last week on these Hong Kong/China protests

In This Issue:

Bryan Perry sees this latest market sell-off as a rare opportunity for active money managers (like us) to show their stuff in selecting the winners that will likely emerge as leaders from the current carnage. Gary Alexander looks beyond the scary headlines of the past and present to identify America as the best place for your stock money now. Ivan Martchev turns his global attention south of the equator to the surprise election outcome in Argentina and what it implies for their currency and stock market. Jason Bodner examines what last week’s down days tell us and why we shouldn’t freak out over a partially inverted yield curve. Then I’ll return to analyze the U.S. market in light of our competitors in China and Europe.

Income Mail: Looking for Phoenix Stocks from August’s Ashes to Lead the Market Forward

By Bryan Perry

It's Time for Active Managers to Show Their Stuff

Growth Mail: If Not U.S. Stocks, Where Else? If Not Now, When?

By Gary Alexander

Despite August’s Volatility, Now is a Great Time to Invest

Global Mail: Time to “Cry for Argentina”?

By Ivan Martchev

Blue Chips are a Hedge for Inflation

Sector Spotlight: What Happened on Last Week’s Big Down Days?

By Jason Bodner

Don’t Freak Out About the “Inverted Yield Curve”

A Look Ahead: China and Europe are Slowing, the U.S. is Growing

By Louis Navellier

Are We Headed for an Imminent Recession? I Wouldn’t Bet on It