In his Daily Market Notes report to investors, while commenting on assessment multiples, Louis Navellier composed:
SPYs performance during and after market hours in 2021 is a classic example of why it is essential to “wait to trade” stocks, otherwise you might be destroyed by bid/ask spreads.
An uncommon copy of Marvel Comics The Incredible Hulk # 1 smashed a world record when it was auctioned for $490,000. The sale represents the greatest cost ever paid for a copy of The Incredible Hulk # 1, which is part of a growing pattern in classic comic book sales. In April 2021, a copy of Action Comics # 1, which contains the very first look of Superman, set the world record for a comic book sale when it was auctioned for $3.25 million. Source: UPI.
After Strong 2020 Macro Hedge Funds Suffer Significant Setback In 2021According to Agecroft Partners 13th annual predictions for the biggest trends in the hedge fund industry for 2022, the macro hedge fund sector might gain from a shift far from fixed earnings assets this year as allocators try to diversify their portfolios into uncorrelated hedge fund strategies. Q3 2021 hedge fund letters, conferences and more Read MoreA Different Start
Were having a various start to the year than normal. Traditionally financiers tend to be more aggressive at the start of the year, not desiring to fall behind early if the market leaps quickly, and having the entire year to recover from errors..
There are frequently bargains readily available from year-end tax loss selling, especially in more unpredictable names. Far this year, were seeing rather a various rotation, more of a flight to quality with more conservative names, those with lower valuation multiples of incomes or sales, exceeding in this first week of the year..
The NASDAQ in particular, which is heavy with high evaluation tech business, is off to a particularly weak start, while the Dow, with large companies with strong incomes and mainly down to Earth evaluations, is doing much better. The finest description for divergence from historical beginning year starts are 1) the high level of uncertainty of the Fed winding down Quantitative Easing and preparing to raise Fed Funds rates quickly, and 2) whether the huge spike of Covid cases is the start of completion of the pandemic and even if it is will it produce more supply disruptions on its way out..
An Adjustment Of Valuation Multiples.
The great news is that we are not seeing any downward revisions of earnings quotes nor GDP forecasts. Its a modification of evaluation multiples of existing projections, which is rational given the greater discount rate of future profits that higher rates of interest must bring..
The truth is that bond yields are and will still be using unfavorable real returns after deducting inflation and money will still offer sub-one percent rates while stocks will still provide the best investment options..
Expect this opening pullback of development stocks to be seen as yet another purchasing opportunity as soon as the next wave of incomes reports affirms the strength of profits development moving forward..
After Hours Peril.
According to our buddies at Bespoke SPY valued just 9.5% throughout market hours, and a massive 16% after market hours. The ethical of the story is that if investors attempted to trade the SPY ETF intraday, they most likely dug themselves a “deal grave” as ETF spreads and after hour performance consumed into any possible earnings. SPYs performance throughout and after market hours in 2021 is a classic example of why it is necessary to “wait to trade” stocks, otherwise you could be damaged by bid/ask spreads.
Further, this “spread danger” is why it is so important to wait on quarterly sales and earnings statements since they generate substantial activity after hours..
I must include that the weakness in NASDAQ this year caused CNBCs Jim Cramer on Tuesday to tell investors to offer growth and buy worth stocks. Far this year, energy and financial stocks have been the leaders. The biggest problem I have with Jim Cramers value statement is that it will soon be “every stock for itself” when the fourth quarter announcement season commences..
Semiconductor stocks are anticipated to announce the greatest fourth-quarter outcomes. I ought to include that at the Consumer Electronics Show (CES) that will quickly be underway, the majority of the current and biggest consumer items, like televisions, virtual reality, video games, 5G and electric vehicles, will all be on display and, obviously, now need more high-powered semiconductor chips. If you have can cash to invest, I have BUY suggestions on: KLA Corporation (NASDAQ: KLAC), Kulicke & & Soffa Industries (NASDAQ: KLIC), NVIDIA Corporation (NASDAQ: NVDA) and United Microelectronics Corporation (NYSE: UMC).
Coffee Beans.
A rare copy of Marvel Comics The Incredible Hulk # 1 smashed a world record when it was auctioned for $490,000. The sale represents the greatest rate ever paid for a copy of The Incredible Hulk # 1, which becomes part of a growing trend in vintage comic book sales. In April 2021, a copy of Action Comics # 1, which includes the first appearance of Superman, set the world record for a comic book sale when it was auctioned for $3.25 million. Source: UPI. See the full story here..
Upgraded on Jan 5, 2022, 3:23 pm.
