The bipolar market activity continued over the past two weeks. Two weeks ago, following the FOMC decision, in light of ever lower commodity prices, the equity markets got hit hard. Last week, as if the week prior to that did not exist, markets rose handsomely. All said and done, the S&P 500 (SPX) ended the week two index points higher for the year or just about 0.1%. As I have written and said many times before, 2015 is shaping up to be a repeat of 2011. With four trading days remaining, it seems that will turn out to be fact rather than speculation.
Not much has worked this year, with one exception – dividend oriented stocks, excluding master limited partnerships or MLPs which were taken apart with the rest of the energy complex. Even Apple (AAPL) declined about 2% this year despite a spectacular rise in earnings of 43%.
2015 has been highlighted by record reported mergers and acquisitions but the initial public offering (IPO) market was very disappointing.
The last four days of this year for most managers won’t pass quick enough and we (me included) cannot wait to wipe the slate clean for 2016. I am not expecting much to take place other than some window dressing and last minute tax selling over these next four trading days.
One important milestone was reached. That was the box office receipts for Disney’s (DIS) Stars Wars Episode VII – The Force Awakens. That latest chapter of the Star Wars franchise was the fastest to earn $1 billion at the box office. We saw it Friday afternoon and it was excellent. DIS stock is up for the year but has gotten cut down by a light sabre the past few months. Expect the company’s board to put The Force Awakens proceeds to good work for shareholders by either or both increasing dividends or stock buybacks.
I have already published my annual list of 10 Things I Won’t Miss. Next week I will return with My Gut Feeling for 2015 – A Look Back and My Gut Feeling for 2016. My best wishes for a happy, healthy, prosperous and safe New Year.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long AAPL & DIS — although positions can change at any time.
Scott Rothbort is the President & Founder of LakeView Asset Management, LLC, a registered investment advisor specializing in high net worth private wealth management. For more information on investing with LakeView Asset Management, LLC call us at 888-9LAKEVIEW or request more information by clicking on the contact button on the top right hand corner of the website. LakeView Management, LLC is a Nevada LLC, with its principal office located in Henderson, NV and branch office located in Millburn, NJ
Scott Rothbort is also the publisher of the LakeView Restaurant & Food Chain Report, a newsletter focusing in on food, restaurant, beverage and agricultural stocks. An individual subscription to the newsletter can be ordered at www.restaurantstox.com Furthermore; Scott is also a professor at the Seton Hall Stillman School of Business in South Orange, NJ.
– Read Scott’s intra-day thoughts and comments on Scutify for which he is a co-founder of its parent company Wall Street All-Stars, LLC
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