As the sun sets on the month of August, before we enter this penultimate trading day, the Standard & Poor’s 500 (SPX) is off just about 1% for the crazy eighth month of the year. We had some exogenous events to contend with – Hurricane Harvey and the North Koreans firing missiles once again. However, the markets have learned to deal with storms over the last few decades and the sell-off related to the Hermit Kingdom’s recent actions were reversed.
As for the hurricane, our first concerns are to the health and safety of citizens and rescue workers in the Houston and surrounding areas. I have reached out to people I know there and thankfully they are safe. Of course, there will be a huge amount of rebuilding that will take place over many years.
Recent weakness in stocks like Home Depot (HD) and Lowes (LOW) will get a support bounce once home rebuilding begins. We have owned US Concrete (USCR) for several months, initially as a value play and then with an eye toward infrastructure legislation. It is a tough call right now as to how to play oil refiners or insurance companies. My Gut Feeling is that insurance will be a better play, but I am first going to look how that sector fared after recent storms.
Today I am scheduled to appear on CNBC live from the New York Stock Exchange on the Closing Bell show with Kelly Evans. We will discuss Warren Buffett who will be making the rounds of the business media all day long. The segment will be around 3:40PM but tune in a bit earlier to be safe.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long SSO, SPXL & USCR — 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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