“What I learned is that in business you must make decisions based on facts, not react with your heart.” - Mario Andretti

Market Commentary

The momentum is building, the markets are strong…just don’t chase after extended winners.

• The infrastructure buildout is an established trend now. There are a dozen market leaders in this area.
• Tremendous activity in the biotech sector. I would not have any shorts here. Look for a slew of merger activity.
• The Advance/Decline on the NYSE hit a new high, the Nasdaq snapped back. The 52-week new-high/new-low numbers look just as favorable.

Economic data and market clues:

The Fed’s path is much more certain. They were late moving, and they knew it. Chairman Powell is now clear. Rates will go lower, most now think by 150 basis points by the end 2025.

Just a handful of high-profile earnings this week. King Costco (COST) tells us nothing new, except that they run a tremendous business.

This week’s economic data releases will point to a goldilocks environment. Not too hot, not too cold.

Selected current holdings

Magnet® :  

ACI Worldwide                       ACIW

Castle Biosciences                CSTL

Argan                                      AGX

FACTS:

Amgen                                    AMGN

Chubb                                     CB

Leidos Holdings                     LDOS

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