Displaying items by tag: nasdaq
The ten-year treasury yield hit one year high at 1.6% on Friday, just after President Biden signed the $1.9 trillion stimulus package into law. Some are arguing that this is a new equilibrium for…view the full story on our partner Magnifi’s site
The Nasdaq is behaving very oddly and it should give investors pause. It is very rare for the Nasdaq and the Dow to be this out of sync. A couple days ago the Nasdaq outperformed the DJIA by 3.5%+, something it had not done in 20 years. Some take this as a sign of bullishness, but in reality, historical precedents say that when the Dow and Nasdaq are out of sync it is bad news. In fact, the only other time the two indices were this out of sync was the dotcom bubble.
FINSUM: The bottom line here is that major Nasdaq volatility in excess of Dow moves are not good. That means days like last Friday should be feared rather than celebrated. Stay vigilant.
The market had eagerly awaited Fed Testimony before Congress on Tuesday as investors wanted clarity on rising inflation concerns, but it appears investors...see the full story on our partner Magnifi's site
Tech shares have been doing very well recently. This has given rise to renewed fears of overvaluation and a market correction. In the ten days leading up to December 8th,the Nasdaq 100 jumped 5.3%. While this makes some nervous after a year of huge gains for tech, history tells us this likely means more gains are coming. There have only been 10 times ion history when the Nasdaq 100 went on a ten-day winning streak, and the average gain in the year following was 19%.
FINSUM: The point here is that even if value stocks do well—which they have been as the economic outlook has brightened—tech stocks don’t look bearish by any means.
Wondering where the market is headed? (so is everyone!) Well, Goldman Sachs put out a pretty unequivocal opinion about it today. Despite the market being at all-time highs when the country is in a recession and unemployment massive, the bank says that the S&P 500 will rise another 7% to close out the year. The only damper in the bank’s forecast is the election. Goldman says it is assuming a Democratic victory, and that could cause higher taxes that could dent the market a bit. GS also says Treasury yields will fall to 1.1% by the end of the year.
FINSUM: So we have two big competing feelings here. On the one hand, with the Fed so strongly in support of markets (and another fiscal stimulus likely), it seems like it could be smooth sailing. On the other hand, 51% of the entire market’s gain since the bottom in March has come from five stocks. On the whole, we think gains are more likely than losses.