Investing in the stock market can be a daunting task for anyone, especially if you are new to the game. However, one investment strategy that has stood the test of time is “buy low, sell high.” This strategy is based on the principle that you should buy stocks when they are undervalued and sell them when they are overvalued. Let’s take a closer look at how this strategy works and how you can implement it. What is “Buy Low Sell High”? “Buy low sell high” is a classic investment strategy that involves buying assets at a low price and selling them when they become more valuable. It’s a simple con ..read more

Summary While market sentiment is showing signs of improvement, the biggest hurdle for stocks remains the Fed. There appears to be a disconnect between improving market action and an aggressive Fed that appears determined to keep hiking rates until inflation is finally brought under control. In addition, inverted yield curves continue to predict the likelihood of an economic recession which would be negative for stocks. At such times, technicians need to rely more than ever on market charts to help determine likely market direction. The next big test will come after next week’s Fed meeting. An ..read more

The Week The week ahead includes the FOMC meeting, a key OPEC gathering, and a variety of earnings reports. The Federal Reserve is largely anticipated to produce a 25-point rate hike to take the target federal funds rate to 4.50% to 4.75%. The consensus view is that the Fed will continue with its tightening policy and signal more rate hikes are still in the mix.Transitory elements of inflation have come down, but the underlying problem of excessive stimulus remains. OPEC oil ministers will meet online during the week to review levels of output. The Joint Ministerial Monitoring Committee of OPE ..read more

Last Week Stocks wrapped up their worst week since September 2022. Recession fears continue to resurface after a hotter than expected report on wholesale price inflation. U.S. Treasuries endured a bumpy week, with the 10-year yield ending six basis points higher at 3.57%. For the week, the Dow Jones average sank 2.7%, the S&P 500 fell 3.3%, and the Nasdaq Composite tumbled 4% This Week The FED has a policy meeting this week. The Fed has delivered four consecutive 75-basis point increases to its benchmark rate. Economists widely expect the FED to raise rates by another 50 basis points this ..read more

Today, we are going to share one of the most successful categories of investing in 2022. Quant investing with managed futures has been one of the hottest trades of 2022.  Quantitative investing has been used primarily by highly sophisticated firms over the past twenty years. As computer processing speeds have continued to grow, investment companies have taken advantage of these methods to build returns that can outperform market benchmarks.  Historically, these investing methods have only been attainable through hedge funds with high investment minimums and management fees. Luckily ..read more

Consumer Confidence Data Released The Consumer Confidence Index (CCI) provides insight into consumers’ assessments of the labor market, as well as business activity, financial conditions and people’s willingness to spend. It also provides opinions on both (1) the current state of affairs (Present Situation Index) and (2) future estimates (Expectations Index), which are needed to make any type of investment decision. Consumer spending accounts for more than two-thirds of the economy. Therefore, it’s important to gauge how individuals might behave in the near future. Banks, manufacturers and re ..read more

HP Layoffs, Tech Layoffs Continue Layoffs in the tech sector continue to build. Recently, we learned that HP (HPQ) is planning on making cuts. Management has indicated that it might be a slow, prolonged cut between 4,000 and 6,000 jobs by the end of its 2025 fiscal year. HP had previously reported having a global headcount of some 51,000 employees. The computer maker disclosed the major job cuts in a statement accompanying its lackluster quarterly earnings report, where it also said sales dropped more than 11% compared to the same period last year. CEO Lores admitted that after ..read more

Where Did We Leave Off? Stocks finished with modest gains last Friday, but the main indices still ended with weekly losses. Investors allowed doubts about the staying power of the recent rally sparked by signs of easing U.S. inflation to creep into their psyche. Stocks turned lower earlier in the week after St. Louis Fed President James Bullard said the central bank’s appropriate target for the federal funds rate could end up as high as 7%, well above the current 3.75%-4% range. The Boston Fed’s Susan Collins followed up on Friday that she was not ruling out a 75-basis point rate hike in Decem ..read more

SECTOR ROTATION MODEL A useful way to determine the state of the stock market and the economy is to compare how various market sectors are performing. Research and history have shown that certain market sectors do better at market tops, while others do better at market bottoms. The chart below shows the Stockcharts Sector Rotation Model through up and down cycles and it plots the relationship between stocks and the economy. The red line tracks the stock market and the blue line tracks the economic cycle. Source: StockCharts.com, Sector Rotation Model by John Murphy We have seen that the (1) st ..read more

It’s Election Time The U.S. election on November 8 is likely the most newsworthy event this week. The consensus expectation is that a divided government between the White House and Congress will lead to more political gridlock and a potential slowdown of Biden’s Leftist agenda. The stock market has outperformed with a dividend government over the returns generated in the years following the same party controlling the Senate, the House and the Presidency. However, a scenario that could rattle the market would be any lack of clarity with regard to Senate control if results are contested. #CO ..read more