10-15-2016, 11:50 PM
Differing central bank policies, uncertain U.S. elections, seasonality and and high stock prices are leaving investors nervous. With these factors in mind, there's a venerable "witches brew" that could wind up causing a 15% correction in markets, leaving investors feeling uneasy, but it's not the end of the world. "The easiest one to spot is earnings and valuations," said Rob Bartenstein, CEO of Kestra Private Wealth Services, which has $1.5 billion in assets under management. Since Brexit happened on June 23, the Dow Jones Industrial Average has gained 2.14%, the S&P 500 has gained 2.7%, but the tech-heavy Nasdaq has tacked on 8.9%, leading Bartenstein to be worried about valuations. If you look at it by sectors, technology is really the only one that's trend at the top end of its range, Bartenstein said.
How to Protect Yourself From a 15% Correction in the Stock Market - TheStreet
For the third quarter, earnings are expected to decline 2.1% for the S&P 500, compared to a 0.3% uptick seen on June 30. If there is an earnings decline, it would be the six consecutive quarterly decline since the third quarter of 2008, when FactSet began tracking the data.
How to Protect Yourself From a 15% Correction in the Stock Market - Pg.2 - TheStreet
Are trade volumes — the bedrock of globalization — on life support? The Brexit vote, the rise of Donald Trump, and shifting economic sands have fed fears that protectionist sentiment will intensify the five-year slowdown in worldwide trade. The precarious outlook for globalization was a hot topic at the Bloomberg Markets Most Influential summit in New York last week. Karthik Sankaran, head of global strategy at Eurasia Group, brought attention to the fact that Trump "led the first 30 minutes" of the first presidential debate on the negative impact of free trade for U.S. workers, reflecting how protectionist sentiment has risen to the top of the political agenda.
Why You Should Stop Worrying About 'Peak Trade' - Bloomberg
Morgan Stanley has updated its annual list of secular growth stocks. In a note published on Thursday, the firm highlighted 30 stocks that its analysts believe would thrive even if the global economy grows slower than they forecast. To compile the list, Morgan Stanley first screened for stocks it had previously classified as growth stocks for 48 straight months, which have also generated positive revenue every quarter for the past three years. They then selected stocks they rate as "overweight" or "equal weight."
Best secular stocks according to Morgan Stanley - Business Insider
Yup. There's now a fund that is devoted entirely to brown liquor. It's always 5 o'clock somewhere, right? The Spirited Funds/ETFMG Whiskey and Spirits ETF (try saying that after a few shots) debuted this week. Like most ETFs, it has a cutesy ticker symbol -- WSKY (WSKY). Some of the top stocks in the fund are Diageo (DEO), which owns Johnnie Walker and bourbon maker Bulleit, Pernod Ricard (PDRDF), the owner of Chivas Regal, The Glenlivet and Jameson, as well as America's Brown-Forman (BFB), the parent company of Jack Daniels.