Broadcom (AVGO)

September 10, 2018

September 10, 2018

The major stock market averages are mixed today (Dow -42 pts; SPX flat; Nasdaq flat). Transports (+1.5%), retailers (+.4%) and semiconductors (+.8%) are faring the best. Healthcare and gold miners are down on the day, as are emerging markets. The banks are roughly flat. The VIX Index is back down around 14 after hitting 15 last Friday. European stock markets closed in the green but most of Asia was down overnight. China’s market continues to falter, now down 23% on the year, after yet another threat by President Trump to escalate the trade war. Most commodities are lower on the day. WTI crude oil is trading at $67.57/barrel after having touched $70 a week ago. Gold is now down 8% this year & copper is off over 20%. Bonds are falling in price (rising in yield) today. The 5-year Treasury Note yield is back up around 2.82%, a one-month high. The 10-year yield is up around 2.94%, inching closer to 3%. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

March 13, 2018

The major stock market averages gapped up after a tame inflation report, but then quickly fell back. The Dow and SPX are currently flat. Defensive sectors—utilities, telecom, consumer staples, real estate—are best-performing. Financials, energy and tech are in the red. The VIX Index is back up to nearly 16. European stock markets closed down about .5%. Commodities are mostly higher, but WTI crude oil fell back to $60.40/barrel after a report that US shale oil production is at record highs. Bonds are unchanged today. The 5-year and 10-year Treasury yields are hovering around 2.63% and 2.86%, respectively.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

March 12, 2018

Stocks opened higher but quickly gave way. At the moment, the Dow is down 86 pts and the SPX is flat. Utilities, telecom and tech sectors are in green whereas industrials and banks are trading lower. CNBC is reporting economist Larry Kudlow is the leading candidate to replace President Trump’s top economic advisor Gary Cohn. Mr. Kudlow is seen as investor-friendly and a consistent opponent to trade tariffs. The White House has acknowledged that Kudlow is on the list of candidates. Again, Wall Street would love to see this happen. The VIX Index is up today around 16.2. Remember, the volatility index spiked over 35 briefly during the recent correction and since then has fallen back to more normal levels. Commodities are mostly lower today, including gold, copper and oil. WTI crude oil is down about 2% to $60.80/barrel. Bonds are mixed, with short-term rates unchanged and long-term rates slightly lower on the day. The 5-year and 10-year Treasury yields are hovering around 2.65% and 2.89%. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

February 20, 2018

The major stock market averages dipped at the open but quickly recovered. The Dow and SPX are currently down 77 pts & up .1%, respectively. The SPX has now recovered 70% of its correction losses. Telecoms, utilities and consumer staples sectors are down over 1% this morning due to interest rate sensitivity and a weak earnings announcement from Wal-Mart (WMT). Semiconductors and banks, on the other hand, are in the green. The VIX Index is hovering around 20, generally regarded as the dividing line between low and high volatility. The only reason that matters is that hedge fund trade algorithms are sometimes programmed to trade on VIX moves relative to 20. Bonds are down in price again as yields head higher. The 5-year Treasury yield is up around 2.67% and the 10-year is up around 2.91%.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

September 20, 2017

Stocks are mixed in early trading (Dow +16 pts; SPX flat; Nasdaq -.24%). We’ve seen a rotation in the last couple of weeks away from defensive sectors (i.e. utilities, consumer staples) and toward cyclicals (industrials, financials, energy, materials). This seems to be driven by a rebound in interest rates & oil; it’s hard to say how long that will last. This morning, transports are up 1.5%, biotechs are up .7%, and energy stocks are up about .6%. We are seeing some uncharacteristic weakness in semiconductors after Apple (AAPL) admitted lower pre-orders for the new iPhone 8 because consumers are waiting for the iPhone X. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

November 2, 2016

Stocks opened lower today (Dow -42 pts; SPX -.4%). The SPX is now 4% off of its peak and the VIX Index is up to 19. Utilities (-2%), energy (-1.1%) and telecom (-.75%) are the worst performing sectors in early trading. The dollar is falling today but commodities aren’t getting a corresponding bump. WTI crude oil is down to $45/barrel this morning on a higher than expected oil inventory report. Bonds are up in price today (down in yield). The 5- and 10-year Treasury yields are back down to 1.27% and 1.81%. The 2-year Treasury back at .82% shows that traders may have built in too much Fed rate hike panic. By the way, the Fed’s monthly meeting wraps up today and results will be announced. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.