Last week, the earnings reports for the first quarter were very strong, some much better than expected, but yet again really good reports did not equate to strong stock performance. In particular, Caterpillar had a great quarter, but informed investors that the first quarter would be the “high-water mark for the year”. Please click the…
Read BlogWe are in the midst of earnings reports for the first quarter and stock performance has not been particularly positive. You can see from the chart below that good earnings reports are not getting rewarded with positive performance (this is unusual), and bad reports are getting punished (as usual). Please click the link below to…
Read BlogThe stock market is beginning to struggle on a technical basis or lose momentum. The S&P 500 made a new high in January, that looked like an exhausting parabolic move. These types of moves are generally associated with market peaks. Please click the link below to continue reading: PVG – Monthly Strategy Update (April 2018)
Read BlogThe stock market is beginning to struggle on a technical basis or lose momentum. The S&P 500 made a new high in January, that looked like an exhausting parabolic move. These types of moves are generally associated with market peaks. Please click the link below to continue reading: PVG – Equity Income Monthly Update (April…
Read BlogThe issues from last week all appear to be fading, with China expressing a willingness to work things out regarding trade issues. So far Syria has turned out so to be a non-event, as we expected. You must wonder what is really going on with the President’s attorney Michael Cohen. Please click the link below…
Read BlogGrowing up in the stock market over 30 years ago, it seems that there has been a significant amount of money, particularly now, that is index or ETF based. Value in certain stocks seems to take longer to be realized, but it eventually does. We are sometimes surprised how long it takes the market to…
Read BlogIf you read our weekly update you know we have been talking about the severe overweight of technology in the S&P 500, and, in particular, the over investment in the FANG stocks. We do not believe there is much of an issue with a trade war with China, it is about overvaluation and over ownership…
Read BlogGiven the most recent pullback in the market we were able to buy some very high-quality companies at valuations we have not seen in a while. With the roughly 10% pullback in the S&P 500 and the benefit to earnings from lower corporate taxes, some of these very high-quality stocks have become attractively valued. Please…
Read BlogThe earnings for the S&P 500 this year are expected to be up 18.6%. This very strong growth is driven to a large degree from lower taxes for corporations and to a lesser degree from economic growth. We believe expectations are very high for corporate profitability. Our concern centers around mostly next year being too…
Read BlogOn Monday, the techology sector had a very tough day, down -2.0%. Technology is a critically important sector for the market as it is nearly 30% of the S&P 500. This is near the highest weighting it has ever been, and obviously a function of the incredible appreciation of the FANG stocks. Please click the…
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