Broad Pullback Follows News of Emerging ‘Bull’ Market
|By Jordan Chussler
After optimism about a new bull market consumed financial media last week, this week, the story was different.
All three major indices posted losses. The main driver, unsurprisingly, was the Federal Reserve’s monetary policy.
Chair Jerome Powell’s admission that the central bank will aim for two more interest rate hikes before year’s end spooked the markets, reversing some of the gains seen over the past month.
At the time of writing, the Dow Jones Industrial Average lost 2% on the week, with the S&P 500 shedding 2.12% and the Nasdaq falling 2.67%.
Unlike the tech-fueled rally that had analysts declaring a new bull market just a week ago, this week’s decline was broad, with 440 of the 500 companies in the S&P in negative territory.
However, ongoing trends in certain sectors continue to show strength, if investors know where to look. Here are this week’s top stories from our team of editors and analysts.
The race toward electric vehicles quickened last week as another of the world's largest automakers adopted a more reliable charging standard. Pulitzer Prize winner Jon Markman explains the trend in EV charging networks, and why it makes this one company a portfolio target.
Senior Analyst Sean Brodrick is a firm believer in the bullish trend of EVs and their battery metals in particular. And with global EV sales soaring, Sean says this metal is critical to the EV revolution and its batteries is a “Buy.”
As director of research and ratings at Weiss, Gavin Magor’s job is to be as clear as possible with you when his team comes to him with data that requires a stern warning. We have identified 10 banks with at least $100 billion in assets and a 90% or more ratio of loans and held-to-maturity securities. That makes them particularly vulnerable to further drops in deposits.
In a year that’s been proven unpredictable for the markets, the one constant has been how the Weiss team deploys safety-oriented strategies. This year, you can meet them in person to learn more about their methodology and tailored picks.
Equally weighted market indices show that a large majority of this rally is not broad and market breadth is narrow. But make no mistake: There are many strong names that have gone up considerably over the past few months, and the Weiss ratings are here to help you find them.
Until next time,
Weiss Ratings Daily