Markets Fret Over Fear of Change in Monetary Policy.

Markets Fret Over Fear of Change in Monetary Policy. October 5, 2021 by Mitchell Anthony   The relatively steady rise in equity prices that we experienced the last 1 ½ years has shown some signs of stalling over the last month. The S&P 500’s recent peak was on or about August 31.  It declined about 4% in the first week of September and then quickly recovered back to its August 31 high by September 22. However, commentary from the feds meeting the third week of September caused fear and investors pushed the market down again to where the S&P 500 is now about 6% below the August 31 high. We saw a similar correction like this in March of this year as well as November of last year.  When investors fear the economic cycle is ending they sell stocks and they tend to sell growth stocks first because of their high valuations.  As a result technology has underperformed over the last month and value areas like energy, materials, and financials have done better but still have declined over 2%. Steady economic data combined with accommodative monetary policy got the markets right back on course during these previous corrections.  Will this correction have the same outcome? We believe so, however we are carefully watching the inflationary environment as well as the dynamics going on in housing for confirmation of our thesis that this market is being driven by Fed liquidity and expectations for modest earnings growth. We believe the Fed’s liquidity pump will remain on for several more years, combined with a strong consumption theme of housing and business and consumer services.  We believe the US economy will ebb and flow with modest to moderate growth. Asset valuations will remain very high as rates stay near Zero.Read more

MACM Portfolios and Equity Indices descend a bit further on China Uncertainty and Tame Economic Data

MACM Portfolios and Equity Indices descend a bit further on China Uncertainty and Tame Economic Data By Mitchell Anthony September 20th, 2021   The equity market’s results last week were mixed as soft but tame economic data combined with further regulatory talk by Chinese officials brought concern to the US markets.  Investors seem to forget occasionally that soft economic data is much better than strong economic data.   The equity markets in America are highly valued and some say ripe for a correction given the right economic event.  Thus far the economic environment has been benign with very accommodative central bank policy and an outlook for modest to moderate economic growth.  The inflation numbers were a bit hot but now are calming just as the Fed had predicted.  This is nirvana for equity markets.  As a result we have highly valued markets that are likely to stay highly valued and tilt higher until the economy stumbles badly.Read more

Markets flat last week but MACM Portfolios Advance!

Markets flat last week but MACM Portfolios Advance! By Mitchell Anthony September 7th, 2021   We had another solid week for MACM portfolios last week. MACM’s dynamic growth portfolio (DG) advanced 0.72% compared to flat returns (0.18%) for the S&P 500.  Recent additions to the portfolio continued for the second straight week to lead the advance with China (CHIQ) returning 2.5% last week.  The FAANG stocks which are heavy in our DG portfolio, had another week of gains advancing approximately 1.10% in total.  FB -1.16%, AMZN +1.65%, AAPL +0.77%, NFLX +4.3%, GOOGL -0.59%.  Investors weighed the corporate news flow and economic reports  and found no compelling reasons to favor Value or Growth with both arena’s up modestly for the week.  We likewise were quiet last week with no major changes to the portfolio based upon news flow.  Large Cap growth IWF +0.33% and Large Cap Value IWD + 0.20%.  The Tech Heavy Nasdaq QQQ advanced 0.34%.Read more

Trends in E-commerce

Trends in E-commerce By Mitchell Anthony September 3, 2021   E-commerce is an exciting industry that contains some of the most innovative companies in the world like Amazon and Ali Baba. The technology and innovation of these companies is shaping the landscape of the global economy changing trends in consumption and providing employment opportunities for hundreds of thousands of people. The industry is still very small and in the early phases of development and adoption by consumers worldwide. The current advancements in technology are enabling the industry to position itself for strong growth, and moderate valuations relative to growth make the industry leaders ripe for investment.Read more

Great Moves in MACM Portfolios Last Week!

Great Moves in MACM Portfolios Last Week! By Mitchell Anthony August 30, 2021   Last week was a terrific week for the markets and for MACM portfolios. MACM’s dynamic growth portfolio (DG) advanced 2.75% compared to 1.6% for the S&P 500.  Recent additions to the portfolio led the advance with China  (CHIQ) returning 4.3% last week.  The FAANG stocks which are heavy in our portfolio, had a great week advanced approximately 3%.  FB +3.6%, AMZN 4.7%, AAPL +.4%, NFLX +1.8%, GOOGL + 4.8%.  Growth portfolios in general did better than value as expectations for a strong rebound in the economy with boomy growth continued to wane from the minds of investors, driving money back to long-term secular growth names like the FAANG.   SIFI’s (sexy, innovative, fragmented, industries) also did well as investors worry less about rising interest rates and more about owning names with strong growth characteristics.Read more