Switch from Trade Fears to Rate-Cut Hopes Lifts Stocks

Excerpt from Louis Navellier's Marketmail - 6/11/2019

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The financial news media has switched its obsession from trade tariffs to a coming Fed rate cut, so the news media is finally reporting some more positive news for a change and the market “melted up” by almost 5% last week, recovering more than two-thirds of its losses suffered in the entire month of May.

Despite this sharp rise in the indexes last week, I’d still say stock picking will beat index funds, especially with the NASDAQ 100, where several flagship stocks are under investigation. Google is under Justice Department scrutiny in a potential antitrust probe, and The Wall Street Journal has also reported that the Federal Trade Commission is probing how Facebook’s business practices impact digital competition. 

The NASDAQ 100 is also being adversely impacted by Tesla’s woes, so NASDAQ’s former flagship index is under siege as many of its mega-cap stocks falter. Fortunately, I do not own Google, Facebook, or Tesla, so I have not been adversely impacted by these NASDAQ 100 flagships’ recent gyrations. 

Navellier & Associates does not own Tesla, Google or Facebook in managed accounts and our sub-advised mutual fund. Louis Navellier and his family does not own Tesla or Google or Facebook in personal accounts.

In This Issue of Marketmail (Click Here to Read)

What a difference one week makes! Bryan Perry examines how some of the “bad news” on the economic front perversely makes a rate cut more likely, which favors stocks. Gary Alexander wonders if China is in danger of the kind of long-term growth malaise Japan has suffered since 1990, if they don’t reform some of their economic shell games. Ivan Martchev also has suspicions about China’s growth rate, in light of falling oil and industrial metals prices. Jason Bodner celebrates the revival of stocks in general, and tech and semi-conductors specifically, as the market wakes up to the good news that has been there all along. In the end, I give three reasons why rates are falling worldwide and why we can expect rate cuts here, too.

Income Mail: The Bond Market is “Already There” and Waiting on the Fed to Catch Up 

           By Bryan Perry

Jerome Powell to Wall Street – “I’ve Got Your Back” 

Growth Mail: Will China’s Growth Machine Suddenly Implode – Like Japan’s Did?

           By Gary Alexander

China’s Growth Rates are Already Slowing Dramatically

Global Mail: Commodities are “from Venus,” Too

           By Ivan Martchev

You Can't Fake Oil Demand

Sector Spotlight: It Pays Dividends to Hunt for Good (Realistic) News

           By Jason Bodner

Equities were “Tweeted into a Tailspin” in May

A Look Ahead: What’s Behind the Global Race to Zero (or even Negative) Interest Rates?

           By Louis Navellier

Most Economic Indicators Point Toward a Slowdown, Justifying Fed Rate Cuts