The stock market is undergoing a shift not seen since the financial crisis — and 3 ignored areas suddenly look like great bets
according to Reuters / Brendan McDermidDon't look now, but a much-maligned area of the stock market appears to be mounting quite the comeback. We're referring to so-called value stocks , or equities characterized by their bargain pricing, relative to the rest of the market. Put simply, value is having a resurgence not seen since the aftermath of the financial crisis. So what does it mean if the value resurgence is here to stay? It appears, for the time being at least, that as historically stretched tech stocks lose their luster , traders are content to rotate into unloved areas, rather than completely exit the stock market.


collected by :Molly Tony
This 'prophet of doom' predicts stock market will plunge more than 50%
After Kroger strikes back at Visa, battle over credit-card fees that may only get worseMarket ExtraThis 'prophet of doom' predicts stock market will plunge more than 50%Hussman sees Nasdaq sinking 57%, Dow tumbling 69%John Hussman, president of Hussman Investment Trust, describes himself as an economist, a philanthropist, and a "realist optimist often viewed as a prophet of doom" on his Twitter profile. That last bit may be the one investors care about on Monday as the stock market shows signs of unraveling on the back of the tech sector's stumble. Hussman's claim to fame includes forecasting the market collapses of 2000 and 2007-2008. Since then, however, he's also become known as a permabear for his repeated calls for sharp stock market declines and his oft-repeated mantra of "overbought, overvalued, overbullish" as the bull market continues into its ninth year by some measures. And he warns that the stock market won't be able to escape this "danger zone" until it shifts to a less dangerous combination of valuations, internals and overextended conditions.GOLDMAN SACHS: The stock market is hurtling toward disaster, and only one thing can save it
according to "From a fundamental perspective, narrow market leadership typically reflects narrow earnings strength, which is often a symptom of a weakening operating environment," David Kostin, the firm's chief US equity strategist, wrote in a client note. It all boils down to today's earnings landscape, which Goldman identifies as a saving grace of sorts for the market. While market returns are highly concentrated into a handful of stocks, Goldman finds that the earnings environment is surprisingly broad-based. Going forward, it will be up to investors to continue assessing the relationship between market breadth and its earnings-specific counterpart. It's when earnings breadth starts dipping that investors should start to worry, so keep your eyes peeled.Great news for bulls: The stock market just did something it hasn't done in 60 years
One, the stock market just made a positive move that has not happened since 1958, the same year that NASA was born and President Dwight Eisenhower, a Republican, was in the White House. Historically, when the market gains in April, May, June and July of midterm election years, the market has finished higher in that year, according to Saut. "The history of midterm election years is that stocks become dicey in August, but tend to rally as we approach the midterm elections," said Saut, in a note. The large-cap index jumped 45% in 1954 and rallied 38% in 1958, according to Dow Jones Market Data. Even without the added boost from politics, stocks almost always gain in years when the market finished higher between April and July, according to Paul Hickey, an analyst at Bespoke Investment Group.Trump has trained stock market investors
After Kroger strikes back at Visa, battle over credit-card fees that may only get worseOpinion: Trump has trained stock market investorsIn many instances, 'buying the news' on the president's tariff- and trade-related comments has proven to be a winning strategyPresident Trump may have trained stock market investors. Although he appears to be unpredictable, some reactions to him in the stock market have become quite predictable. Whenever the debate becomes heated and global tensions surface, the stock market reacts adversely as well. Read: This is the only second-half investment strategy you needThe action in the stock market overnight after Thursday's session was indicative of that. Although Donald Trump himself may be very unpredictable, the stock market considers the tariff battle to be a provider of rather predictable opportunity instead.collected by :Molly Tony
Comments
Post a Comment