We’ve had a decent month in the markets—despite all the impeachment hoopla. It looks like the China trade issue is improving, housing starts and building permits are healthy, and unemployment remains low. Sounds like the making of a great holiday season!
We begin this issue with our Spotlight Stock, a company that has been in business for 67 years, residing in the defense and aerospace sectors. As I note in my Feature article, both of those arenas are experiencing fantastic growth, which bodes well for our Spotlight Stock.
Wall Street’s Best Investments 824
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Market Views
Growth still the Sweet Spot
Our U.S. equity timing model remains on its November 1 buy signal. Small-cap growth remains stronger than small-cap value. There are no other consistent style preferences in relative strength. 10-year Treasury note yields have settled into the 1.80%-1.90% range. Our investment-grade bond model remains on its January 2 buy signal. Since its buy signal, the total return of the Vanguard Total Bond Market Index Fund (VBMFX) is up +8.6%. Corporate high yield bond funds remain in their uptrend and are making new highs.
Dr. Marvin Appel and Gerald Appel, Systems and Forecasts, www.systemsandforecasts.com,
800-829-6229, December 16, 2019
Volatility and Fear Low
The Volatility Index (VIX) dipped below the 12 level for the first time in three weeks today, as the risk of a no-deal Brexit or a full-blown global trade war diminished. With the holiday season quickly approaching, volatility might remain very low this month, and we might even see the fear gauge hitting single digits again.
Ken Berman, Canaccord Genuity Research, www.canaccordgenuity.com, December 16, 2019
Low Rates, More Upside
We had a confluence of positives last week that included the “phase one” trade agreement between the United States and China, a signal from the Federal Reserve that there are no rate hikes likely in 2020, a vote in Britain that nearly ensures passage of the Brexit deal and the new agreement to replace NAFTA. For these reasons, and for other bullish reasons (economic data, jobs, etc.), we see more upside ahead for this market going into 2020. Moreover, the market is ignoring the impeachment kerfuffle, as it rightly should.
Mark Skousen, Forecasts & Strategies, www.markskousen.com, Eagle Financial, 300 New
Jersey Ave. NW, Suite 500, Washington, D.C. 20001, December 16, 2019
To read the rest of this month’s issue, download the PDF.
The next Wall Street’s Best Investments issue will be published on January 16, 2020.
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