USIR Weekly Update Hotline
For Monday, June 26, 2017
The Market at Midyear
Midway through a
tumultuous 2017 the stock market averages are elevated. Yet the only group
that's continued rising since March 1 are the so-called FAANGs--shorthand for Facebook, Apple, Amazon, Netflix and Google. And even they took a hard shellacking
earlier this month, but appear to be recovering.
looming midyear concerns: Whether the FAANGs will resume leadership in an
otherwise leaderless market. Whether the Fed will be too hawkish in raising
interest rates. Whether oil price prices will continue their skid from $51 to
$42 a barrel. Whether Pres.Trump can turn undelivered campaign promises into beneficial
As we enter the "summer doldrums"
of July and August, when investors and portfolio managers are vacationing
and taking long weekends, those concerns are just a few of the worries weighing
upon a momentarily wobbly market.
Add to them myriad other threats to
peace, progress and prosperity. Indeed, for a nation so bitterly divided, beset
by political strife at home and assaults on American values abroad, the wonder
is that U.S. stocks have done as well as they have. But then, USIR has always been
bullish on America.
Your faithful editor and his family are
now headed for our annual sojourn into the Adirondack wilderness of northern New York--where the only
tweets we'll hear will be the cries of loons, and angry words will be replaced by
soft breezes whispering through the towering pines.
Meantime, back in the real world, we
remain fully invested as possible in the model portfolio positions detailed in our
June 15 issue--but for now letting cash from any stop-loss sales accumulate.
Those positions include the FAANGs and their ilk which, over the long pull, can
most reliably deliver superior earnings growth.
Stephen W. Quickel,