The best way to describe this week’s market action, is in terms of the late great Muhammad Ali. Ali’s weaving and bobbing was called the “Rope-a-Dope,” in which he danced like a butterfly, avoiding any devastating punches from his opponent. Since Monday. the market has been in Rope-a-Dope mode, shuffling from side to side, scoring a few points but not sustaining any meaningful damage. Given that this was a quiet news week; that should not come as a surprise.
The result was working off some oversold conditions and inching ever closer to the old all-time high for the Standard & Poor’s 500 (SPX) of 2,138.37. The index closed yesterday at 2,115.48. It is not a matter of if, but when a new market high for the SPX will be made. My guess is that will take place sometime next week, but the timing is not all that important.
All the while, the market’s insatiable appetite for bonds continues unabated. The 10-year US Treasury yield now stands at 1.66%. Inventory of quality corporate debt is running extremely low on the short end of the curve while new issuance on the long end is setting records.
I was quite busy this week, making several changes to holdings in our Growth Strategy. As an example, I sold a long term holding in Walt Disney (DIS) and added to our residential housing sector theme.
The other day I wrote about the poor May jobs report. I wrote a lengthier article for MarketWatch on the topic. Also, I was interviewed by USA Today on the subject of restaurants, with a focus on McDonald’s (MCD) and Restaurant Brands Int’l (QSR), owner of Burger King and Tim Hortons. I expect the article to be published next week and will alert my readers accordingly.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long MCD — 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
– You can email Scott at email@example.com
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