“Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong.”   - Bernard Baruch

Market Commentary:

A spike in the VIX, carry trade … and now we need to worry about the Yen?

• Just a wild week where everyone was right and wrong for a minute. I think even the “algos got tired”.
• The stock market cracked, programs traded, and then recovered. A regained respect for fear is a good thing.
• The number of 52- week lows has shrunk again, a very encouraging sign for the stock market.
• We see piling into a few select daily winners, while absolutely punishing others beyond what makes any financial sense. The exaggerated price moves in even big cap companies are coming from the “bots trading against bots” reacting (over-reacting) to news.
• Happenings in Washington DC, the Middle East, Europe, and the rest of the world are not helping to foster long term thinking or investing.

Economic data and market clues:

A couple of big earnings in retail as Home Depot and Walmart step forward.

Two big inflation data points will also keep the Fed watchers busy while you will hear more calls of “lower the rates already!”.

Selected current holdings:

Magnet®:

Embraer ADR        ERJ

Palantir Tech         PLTR

CAVA Group          CAVA

FACTS:

Allstate                     ALL

Cintas                      CTAS

RenaissanceRE       RNR

For more information, contact us.

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ProInvestor Insights - July, 2024
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