The Market Returns to "Normal" After Christmas Lows

Excerpt from Louis Navellier's Marketmail - 1/15/2019

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I think the best way to describe the market recovery in the past three weeks is a “return to normal,” or “normalization.” I was especially encouraged to see many small-capitalization stocks “melt up” after suffering from liquidity woes in the fourth quarter. It was also rewarding to see some of the best stocks on the board rising strongly, even before their fourth-quarter earnings announcements come out. For instance, analyst upgrades from Raymond James and UBS helped Netflix (NFLX) steadily appreciate last week. The next big test will be the actual fourth-quarter earnings announcements – which begin this week.

Navellier & Associates owns NFLX in managed accounts and or our sub-advised mutual fund. Louis Navellier and his family own NFLX, via the sub-advised mutual fund and in a personal account.

In This Issue of Marketmail (Click Here to Read)

Bryan Perry offers a fascinating analysis of the changing dynamics of Chinese and neighboring Asian manufacturing plants, which portend a Chinese compromise on trade. Gary Alexander follows with an equally fascinating analysis of the “clean, green, and unseen” nature of GDP growth, the opposite of the belching steel mills of old. Ivan Martchev offers an encouraging message from the junk bond market, which never confirmed any “bear market” warnings during the recent stock slide. Jason Bodner gives an equally vital analysis of recent stock market actions in light of his unique “unusual institutional buying” indicators. Then I’ll take a look at “normalizing” ETF spreads, Treasury yields, and economic indicators.

Income Mail:  

The Sino-U.S. Trade War is Adding Fuel to The Chinese Exodus 

           By Bryan Perry

Companies to China: “We’re Outta Here!”


Growth Mail:  

Most Growth is Clean, Green, and Unseen

           By Gary Alexander

The Internet Increases Productivity Without Boosting GDP Much


Global Mail:

The Dichotomy Between Junk Bonds and Stocks Continues

           By Ivan Martchev

It’s the Market (before the Economy), Stupid!


Sector Spotlight:

What Happens When Stocks Fall 15%+ Then Rapidly Rise 10%?

           By Jason Bodner

ETFs are the “Tail that Wags the Dog”


A Look Ahead:

ETF Spreads and Treasury Yields Have “Normalized” in 2019

           By Louis Navellier

The Market Recovery Has Coincided with the Partial Government Shutdown