Discount the Happy Talk + More!

What happened this week?

• A Recapitulation: The S&P 500 and Corporate Profit - Now that the earnings season is over, we can see that there is no evidence that any of the aforementioned profit-trends have been broken.
• Investors Only Have Eyes for Cash - If you are starting to have a case of déjà vu around the current debt ceiling negotiations, you are not alone. In 2011, markets were relatively flat during the year before Congress and the White House (temporarily) buried the hatchet with the passage of the Budget Control Act on August 2, 2011.
• BofA Flow Show: Bonds and Bubbles - Scores on the Doors: crypto 60.0%, stocks 6.5%, gold 6.4%, HY bonds 3.0%, IG bonds 1.8%, cash 1.7%, US dollar 0.7%, govt bonds 0.0%, oil -7.4%, commodities -9.2% YTD.
• The SeeSaw Becomes Extreme - We’ve described the past several years’ stock market as a seesaw in which the “market” was the fulcrum of the seesaw. On one side of the seesaw sit the highly speculative growth sectors of the market (Technology, Communications, and Consumer Discretionary) coupled with innovation, disruption, and meme stocks. On the other side of the seesaw, sit virtually everything else in the global equity markets.
• Discount the Happy Talk - For the long-term, we remain optimistic about the US economy and the stock market.?But we don’t share the stock market’s optimism about the next year or so and think recent data support the case that the US is still headed for a recession.
• Total Concentration - An ever-popular question these days is whether the October 12th, 2022, low for the S&P 500 was "the" low—and thus, if the bear market is over. The short answer is no one knows, and that may be the case for some time.

Press Play ?

Paul Kornfeld: What Are The Charts Saying About Markets?

Seeking strategies to capitalize on the current market conditions? This episode, featuring?Paul Kornfeld, CFA?President of?SIACharts.com, discusses the utility of his firm's proven investment tools and a framework to cope with fluctuating markets and risk management. We delve into the significance of technical analysis amidst zero interest rates and undervalued fundamentals over the past decade, along with the challenges of risk management during the current market shift that began last year.

The Game Has Changed – What About You?

In this episode,?Cole Smead, CFA, CEO of $5-billion Phoenix-based?Smead Capital Management?shares insights on markets, investment climate, and their 8-point investing philosophy. Smead explores the process of finding underloved and overlooked investment opportunities, similar to the approaches of Munger, Lynch, and Buffett. The conversation covers the stark contrast between value factor investing and Smead's long-term investing approach, domestically and internationally. Despite their go-anywhere investing strategy, they currently favor energy and commodity sectors, having discovered significant opportunities there. Since its establishment 15 years ago by William Smead, Cole's father, the firm has successfully navigated such generational investment opportunities.

Stock Report ?

Top

1. Remark Holdings Inc ?20.00%
2. Chewy Inc ?17.29%
3. New Oriental Education and Technology Group Inc ?17.17%
4. Tesla Inc ?16.11%?
5. Uranium Energy Corp ?14.02 %?

Bottom

1. Mdu Resources Group Inc ?-31.98%
2. Big Lots Inc ?-21.65%
3. Ulta Beauty Inc ?-14.96%
4. Pvh Corp ?-8.68%
5. T mobile Us Inc ?-7.41 %

#FridayFunnies ?

Read More on AdvisorAnalyst.com

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+ Warming Into Duration

+ Big Tech Turnaround: Can It Continue?

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