This week’s calendar is rather quiet; but, will be dominated by the Federal Reserve Open Market Committee’s (FOMC) interest rate decision. The probability of a rate hike is 0%. The probability of a rate cut is 2%. So, the only important aspect of the FOMC’s Wednesday rate decision will be the statement and comments by FOMC Chair Jerome Powell. Unless the FOMC and/or Powell see something that the rest of the civilized world does not, the rate decision will be a non-event.
What will be interesting this week will be Lyft’s (LYFT) S-1 IPO filing with the SEC. We will get a peek into the #2 ride sharing company’s operations and financials. In a market that is starved for new issues, Lyft will likely have strong interest once it is brought to market. My Gut Feeling is that as overpriced as the deal might be and as much as the stock will pop after the offering takes place, you may want to save some capital to allocate to Lyft. I do not anticipate a busted IPO as was the case for Facebook (FB) or Twitter (TWTR).
Speaking of FB and TWTR – avoid these stocks at all costs. If you insist on buying them, please make sure you can do so with Monopoly money. As I have said before, the best days for social networking stocks is in the rear-view mirror.
Boeing (BA) is still in the penalty box, although there is a good chance that the stock bottomed out at $363.33 last Wednesday.
Today I am going to appear on the Market on Close show on the TD Ameritrade Network at 3:10 PM EDST / 12:10 PM PDST. If you cannot access the show, I will provide a link in a future My Gut Feeling.
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Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long BA 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 a professor at the Seton Hall Stillman School of Business in South Orange, NJ.
– You can email Scott at scott.rothbort.lakeview@gmail.com
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I read this article and agree with your sentiments. I think the ecomony is weak to have a rate hike
To begin with, thank you for reading MY Gut Feeling and posting your opinion.
Please don’t get me wrong. I think that the economy is quite strong. Stronger than it was in the eight years preceding the Trump Administration. This is not opinion, it is fact, as one can confirm in economic data. However, the reason that the FOMC will not raise rates is that inflation is within the targeted levels that the FOMC deems acceptable. Recall that the FOMC has a dual mandate – economic growth and price stability. Price stability is a fancy term for inflation. Had I seen inflation running at a higher rate, I would be calling for more FOMC rate hikes. Alas, that is not the case.