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“The surest way to be profound: Just keep both feet on the ground.”  Julian Baggini

Market Commentary:

No need to over-reach now- there are enough great looking companies.

• There is an international push to get more capital into the US. This is significant and should not be underestimated.
• The new 52-week low list has gotten even shorter, a very bullish sign. It is giving a market green light. Yes, the market is already a bit overbought, but you need to make hay while the sun is shining. Just do not chase, be patient – even great stocks pull back.

• Imagine being invested in a portfolio of only 20-30 of the most trustworthy and profitable companies. You might not need to follow the news so closely. Follow The Trust 200 index at this link.

• The Trust 200 Index had another year in 2024 showing you do not need to take excess risk to generate excellent returns. A diversified group of high-quality companies with great cash flow will do well in most environments, and over time.
• Despite my optimism, remember there are failing companies even in great economies. At Magnet, we start out by screening out nearly 90% of all companies as portfolio candidates. This distorts my views because I spend less time looking at anything less than superior companies.
• “The IndusTeck Bounce” – my new reason for optimism. Definition- The economy’s bounce resulting in America’s industries using technology to enhance productivity. Look for AI use cases.
• Inflation is 3%, bonds yield 4.5%- move on, there is not much more to think about here. This is a time to own rather than lend. You just need to own the right things.
• The US infrastructure buildout looks like a multi-year theme. We see dozens of great looking companies that should benefit as America first policies are rolled out.

Here is a link to the FOX Business segment from 12/27 where I share my current best companies to consider and overall market views.

Economic data and market clues:

The pro-growth and America first policies of the new administration has kick started consumer and stock market optimism. Despite obstacles and potholes, the environment has been established for winners to win.

If you are a news junkie, this is your week. Earnings season in full gear, Fed meeting, cabinet approvals. Expect to be tired after this week.

Look for more earnings beats and positive forward guidance from most companies.

“Let’s Give Growth a Chance” – is my idea for a new song for the new administration. It will solve a lot of problems.

Magnet® : 

Frontdoor                    FTDR

Idaho Resources         IDR

Iridium Comm              IRDM

FACTS:

Generac                       GNRC

Dick’s Sporting             DKS

Technip FMC                FTI

More By This Author:

“Let’s Give Growth A Chance” – A New Song For The New Administration
Do Not Get Caught Holding Story Stocks- The Market Is Unforgiving
Focus On High Cash Flow Companies. You Are The Company You Keep.