I am saying again, the market is acting as if it wants to go up. Struggling Greece, an overvalued bond market, and China struggling with 7% growth all are reasons the market could make a correction. Oh! Did I mention the high P/E ratio of the S&P 500? Many learned folks suggest this s a reason the market will correct, and, well, many don’t as well.
- Over the weekend, Goldman Sachs published a massive research piece asking if equity market valuations are in “dangerous territory.” To answer the question, the bank pits Nobel laureate Robert Shiller and Wharton professor Jeremy Siegel against each other.
Well, you guessed it. These two top economists each had his version of the market regarding valuations, and the versions were polar opposite. Shiller says the market is dangerously positioned and Siegel says the market is just fine. Who are we to believe?
And then there is Jeff Greenblatt, an analyst who writes for Futures magazine, a pessimist about the market.
- Markets don’t tend to bottom on arrogance. My view is a day of reckoning is coming. They already have a taste in Shanghai.
He is referring to the China market, which has had a big drop recently, some 10%, and that could be that it too is struggling with China’s anemic 7% growth rate.
- In fact, there are more risks today than I can ever remember and I don’t think there is a person reading this who can dispute it.
For sure, one thing he is wrong about is there is at least one person reading him that disputes his notion that the market is fraught with more risk today then he can remember, and that is me. The reason is simple. I believe in the fundamentals of the market; Greenblatt does not.
- As you know I’m not into fundamental work and totally rely on charts and market psychology.
That is fine. To each his own, but my advice to potential market players is that dismissing the fundamentals of the market is like trying to manage your garden without ever going outside. How do you assess when to water, when to feed, and when to prune without knowing how much sunshine there is, how much rain, and the temperature? These three things are fundamentals of gardening, just as consumer sentiment, consumer spending, and employment, are fundamentals of the market. Just sayin’ …
- Two of the three major wireless-charging standard groups—the Alliance for Wireless Power (A4WP) and the Power Matters Alliance (PMA)—finally announced Monday that their plans to merge are official.
The above is a big deal for wireless charging, and it means there will be a boost in the wireless charging world.
- The union of these two organizations means a whole lot of tech companies coming together to form a wireless charging standard that PMA president Ron Resnick hopes will change the way the world powers its electronics.
A wireless charging standard will mean more wireless-charging products, which will mean more production of said products. Is there opportunity here?
- Nestle USA said on Tuesday it would remove artificial flavors and reduce salt by 10 percent in its frozen pizza and snack products by the end of this year. Taco Bell and Pizza Hut, owned by Yum Brands Inc (YUM.N), said in May they would remove artificial colors and flavors from their food.
Not much opportunity in the above, only contextual understanding, however, it is interesting as a follow up to my writing a couple of weeks ago about the Millenials and how the world of business is changing to meet their expectations and needs.
- Restaurant chains and food companies are under pressure to offer less-processed products amid growing concerns that artificial colors and flavors could cause health problems.
It has been a long time coming that packaged-food producers and restaurants stop cutting corners with chemicals and start selling foods that actually help the body work, rather than the other way around.
Finally, a thought as we enter yet another presidential election cycle.
- The idea that billionaires can buy elections has taken root in the public imagination.
Here is the thought: Is it in our imagination that billionaires are buying elections?
Trade in the day; invest in your life …
