This week we discussed Amazon’s blockbuster $13.7 billion acquisition of Whole Foods. We expect the Amazon transaction will have far reaching effects on the grocery and restaurant sectors, and perhaps other areas in retail as well.
This week we discussed exciting developments in cancer therapy at the ASCO conference, and the new tools we’re using to track them. We also talked about group rotation, and the possibility of new market leadership if the Tech sector cools.
We expect the FOMC to raise the Fed Funds rate when they meet next week, as recent data show the economy strengthening. This week we also feature an investment management company paying a 6.2% dividend with 47% upside potential to our 24 month price target
We expect a gain of between 6% and 16% for the S&P 500 this year, but selectivity will be key to success. This week we feature a company in the metals & mining group with 83% upside to our 24 month price target.
This week we feature an industrial company focused on the transportation sector with 52% potential upside to our 24 month price target.
S&P companies with the highest tax rates have been the strongest performers since the Presidential election. Our featured company this week is a large asset manager poised for a turnaround. It is paying a 4.2% dividend and has 47% upside to our 24 month target price.
The Presidential election caused large institutional buying this past week, with strong rotation into banks, insurance and infrastructure-related companies. Trump’s proposed corporate tax cut could be the impetus for the next leg of this bull market.
The bond market had a very rough week & month. It is the most over-valued it has been in history. We remain concerned that bonds have further downside over the intermediate and long-term.
This week we focused on Gartner’s forecast for growth in IT spending during 2017. Software & services lead the way with communications getting the biggest slice of the pie.
Mr. Trump is correct. The bond market is in a bubble, there’s no way escaping it. See our slides proving the point.
This week we discussed the most exciting growth area in the technology sector: fiber optic communications. Top companies we are watching: ACIA, FN, FNSR & GIMO.
The IPO market is making a strong rebound despite public caution, and the U.S. stock market should attract more capital now that Japanese and European pension fund managers earn zero return on U.S. Treasury Notes.