Excerpt from Louis Navellier's Marketmail - 9/4/2019
The interest rate environment remains more bullish than ever for the stock market! Last week, the stock market celebrated the lowest 30-year Treasury bond yield in over a decade as the S&P 500’s dividend yield rose above the 30-year Treasury bond yield, an event that hasn’t happened since 2009, when a massive 10-year bull market rally began! Since the Fed is carefully monitoring global events, it will be interesting to see just how fast they cut key interest rates, but we could see two 0.25% interest rate cuts at the next two Federal Open Market Committee (FOMC) meetings due to rapidly falling Treasury yields.
Most U.S. economic news is also positive, but despite this run of good news, CNBC has been featuring Nomura analyst Masanari Takada, who called for a “Lehman-like” plunge and a monster sell-off that could happen soon. Specifically, in a client note, Takada said the U.S. stock market is facing its “greatest test of the year thus far,” adding that low sentiment is poised to prompt “panic-selling by fundamentals-oriented investors and systematic selling by trend-following technical investors along the way.”
Let me say this bluntly. CNBC likes to promote obscure bearish analysts to boost its ratings and Internet hits. Remember Nouriel Roubini? Like the boy that cried “wolf,” perma-bears tend to be ignored after making several false calls, and I believe Mr. Takada will soon take his place in this “sky is falling” club.
Unlike Mr. Takada, Bryan Perry knows that low investor sentiment is a contrary sentiment – a good buy signal. Bryan also highlights a sharp rise in a shipping index, indicating revived global growth ahead. Gary Alexander promotes wider asset diversification to survive dangerous and volatile months like August and September. Ivan Martchev is taking the Labor Day weekend off after his annual vacation to his native Bulgaria, while Jason Bodner and I are literally weathering the assault of Dorian on Florida!
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