Excerpt from Louis Navellier's Marketmail - 1/15/2019
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.
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.
The Sino-U.S. Trade War is Adding Fuel to The Chinese Exodus
By Bryan Perry
Companies to China: “We’re Outta Here!”
Most Growth is Clean, Green, and Unseen
By Gary Alexander
The Internet Increases Productivity Without Boosting GDP Much
The Dichotomy Between Junk Bonds and Stocks Continues
By Ivan Martchev
It’s the Market (before the Economy), Stupid!
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