Some Bullish Moves Worth Mentioning In A Bearish Market

Stock, Trading, Monitor, Business

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May has been another anemic month for every equity index, from the Nasdaq to the Dow. As a few too many Q1 earnings reports miss their marks, each day seems to bring more uncertainty, underperformance, and incremental losses. And as the tickers slant down, many wonder where the bottom will be.

Honestly, it’s too early to tell, no matter what others want to tell you. With continuing runaway inflation, soaring gas prices, and labor scarcities, the economy could get worse still before it rights itself.

But believe it or not, those three negatives aren’t the focus of today’s article. Instead, I want to point out that yesterday, as we collectively powered through the perils and procedures of a Monday morning, stocks didn’t drop.

From The Wall Street Journal:

“U.S. stocks rose, led by the financial sector, as the S&P 500 pushed away from bear market territory after flirting with such levels in a volatile trading session Friday.

“The broad-market benchmark was up about 1.8% on Monday afternoon. At one point Friday, the S&P 500 slid so far it was on track to close at least 20% below its January peak – what would have been considered a bear market – before regaining ground. The Dow Jones Industrial Average rose 2.1%, or more than 600 points, while the tech-focused Nasdaq Composite Index was up 1.4%.”

Last year, numbers like these would’ve done little to move the needle in terms of notability. But these days, a spike like this spells the difference between being in a bear market and sitting at the brink. Was the rally enough to repress our recent stock retreat? Today’s market action seems to say no. But there are some silver linings to look at anyway.

Consider, for one, how the financial sector fared well yesterday, rising about 3.7% overall. JPMorgan Chase (JPM) ascended around 7% for its part after painting a better picture of economic prospects on Monday. And as we know, a rising tide in the banking world elevates other industries.

Other big winners from yesterday included:

  • Retail outlet Ross (ROSS) – up 10%.
  • Tractor giant (John) Deere (DE) – up nearly 7%.
  • Caterpillar (CAT) – up nearly 4%.

And mark my words. Even on their bad days, there are other stocks out there that are worth buying into and holding. You just have to know where to look.  

More Non-REIT News to Know About

This month, we’ve reported on a number of organizations officially removing themselves from the Russian equation. It seems like a new blue-chip backs out of the Putin-led republic each week, closing shop in light of the Ukrainian invasion. And now another giant officially announced its exit. 

Starbucks (SBUX) – a company I mention quite often elsewhere, though mainly because I’m obsessed with it – said yesterday that it plans to go from suspending its Russian businesses to closing shop altogether. This ends a 15-year presence in the country.

Naturally, that will affect all 130 of its stores there. Fortunately for the nearly 2,000 employees who work there though, they’ll continue to be paid for six months and can also get assistance in finding new employment opportunities.

Like I said about the McDonald’s (MCD) exit – and setting everything else aside – this is a real blow to global capitalism and geopolitical relations. What Russia will look like at the end of all this, I can’t venture to guess.

I hate to keep being so vague about what the future holds, but I’d rather be honest than lead you down a wrong road. So, since I don’t have a crystal ball, I’m just going to have to wonder with the rest of you about such things.

The World According to REITs

The 22nd Annual B. Riley Institutional Investor Conference in Beverly Hills is attracting attention from all over the real estate investment trust (REIT) world this week.

With a history of bringing together some of the top minds across multiple capital markets, this premier industry event is a great way to learn about strategic, operational, and financial successes. From the release:

“After a two-year hiatus due to the pandemic, I’m thrilled that B. Riley Securities will once again be hosting our Annual Institutional Investor Conference, connecting institutional investors with proprietary middle-market management teams – and bringing together our clients, partners, colleagues and friends all in the same forum.

“Our 2022 conference comes after an extraordinary two years for B. Riley Securities where, despite the pandemic, we grew our equity capital markets franchise by more than seven times and took our fixed income business to over two billion dollars of new issuance annually. Our client base has never been larger, and we look forward to connecting with those who have entrusted us during these unprecedented times,’ said Andy Moore, chief executive officer of B. Riley Securities…”

Held Wednesday and Thursday, the event will feature executives from companies such as:

  • Diversified Healthcare Trust (DHC).
  • Office Properties Income Trust (OPI).
  • Service Properties Trust (SVC).
  • Industrial Properties Trust (ILPT).

If you’re in the area, this could make for an interesting event full of insight from top REIT investors. And even if you’re not, I’ll be keeping an ear out for the big announcements, ideas, and other exciting news.

Brad Thomas is the Editor of the Forbes Real Estate Investor.

Disclaimer: This article is intended to provide information to interested parties. ...

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