Week Of June 2nd: What's In Store For The Markets

“Never overpay for a stock. More money is lost than any other way by projecting above-average growth and paying an extra multiple for it.” Charles Neuhauser

Market Commentary:

• While the overall market and indexes look healthy, overvalued and high price- to- sales companies are being crushed by a move to value.
• The number of new 52-week lows remains low overall, but we are now seeing more new lows than new highs on NASDAQ. A dangerous sign for sure with the index recently hitting an all-time high.
• Seeing strength in many sectors- insurance, finance, basic materials, shipping, telecom infrastructure, and technology. 
• Pay extra attention to valuation. 

Economic data and market clues: 

A slew of economic data released, including payroll numbers on Friday. While “reported numbers” are showing modest growth and subsiding inflation, the “please lower rates” crowd will continue to be disappointed. 

Earnings reports are slim this week, offering little guidance.

The stock market is similar to the rest of the economy- winners and losers, with many more losers than winners.

In the NBA there will be one Champion for the year. The league will have one MVP, dozens of All-Stars, with over 450 players. Our goal is to use data to rank eligible companies and identify and invest in All-Star companies. 

Current holdings:

Magnet®:

Mr. Cooper Group COOP

Applovin APP

Novo Nordisk NVO

FACTS:

Ameriprise AMP

JP Morgan Chase JPM

Regeneron REGN

Companies on our watchlist: 

Weatherford International WFRD

Logitech International LOGI

Leidos Holdings LDOS

For more information on our methodologies, please visit magnetinvestmentinsights.com

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