I took some time off from writing to: enjoy the holidays; endure the end of tax season; and, most importantly, to spend the evenings away from the computer to enjoy some time with my visiting daughters. We even caught Carlos Mencia’s comedy show one evening. Dee dee dee (that’s his tag line). Furthermore, we performed an upgrade to this website. There will be more intensive modifications to the site in coming weeks.
As I promised, two weeks ago was going to be a snoozer, and it was. (That was except for the Stanley Cup playoffs – Let’s Go Rangers !!!) Then last week began as much of the same. However, after a series of mixed financial results, the markets and financial stocks found a bottom after Goldman Sachs (GS) reported results last Tuesday. GS apparently disappointed Wall Street with poor results from its trading division. Everyone is entitled to a bad trade or quarter and GS just had theirs. GS is still off over 10% from its March highs but is worth keeping on your shopping list if the financials get some follow through. Recall; I lightened up on financials several weeks ago. Last Thursday, the S&P 500 (SPX) posted its best session since March 1.
Yesterday’s move following the results of the first round of the French election was somewhere in between those two trading days’ results. What is really behind the US markets’ move the last few sessions was that tax reform rose to the top of the Trump Administration and Congressional to-do list. Also recall, that healthcare reform was irrelevant to Wall Street. Tax reform is not.
Tax reform will benefit large cap multinationals and that does not matter one iota to those laggard small caps, With that in mind, I have been moving more capital into large cap multinational stocks in both our Growth and Dividend Value Portfolios. In the past two weeks, I have purchased Johnson Controls (JCI) and International Business Machines (IBM). We bought Big Blue after that stock’s earnings related sell-off. I have had my eye on Caterpillar (CAT) for a few weeks. The stock seems to have broken free from its recent investigation related sell-off. CAT is next on my large cap multinational buy list, but let’s see how the market reacts to earnings today. I am hoping for a lower price to snap up some shares.
The rest of the week will be interesting as large cap tech stocks begin to report results. Alphabet (GOOG, GOOGL), Amazon.com (AMZN), Intel (INTC) and Microsoft (MSFT) all report on Thursday. Facebook (FB) and Apple (AAPL) are reporting a week later than usual, which will take place next week. Tech has had the hot hand with the NASDAQ 100 (NDX) closing yesterday at an all-time high. By Friday, we will see if the party is ending or will continue in that sector.
Also, there will be talk of a potential government shutdown. We’ve been there and done that before. We know how it ends. If you find yourself listening to the media drone on about a government shutdown, I suggest you watch Carlos Mencia on the internet. It will be more entertaining and informative.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long AMZN, AAPL, FB, GOOG, GOOGL, JCI, IBM, MSFT, SSO, SPXL, QLD & TQQQ — 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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