Short-Termism Vs. Optimism: Weekly Nifty 9 Must Knows

Welcome to another trading week!!  Have a great trading week, and take a look at some of the materials from our Weekly Research Report (subscription necessary).

Research Report Insight #1

What’s troubling, from my perspective, is that such strategists/analysts continue to offer the same calls month-after-month, and regardless of markets’ trend, amongst many variables. Craig Johnson marched out on CNBC just this past week, and once again with markets under pressure, to reiterate his market correction call.

A couple of reasons Johnson continues to beat the correction call drum are as follows:

  • Rates rising typically prove a headwind for equities
  • First year of a New Presidential year historically delivers a 5.8% return
  • Also, see a drawdown of roughly 16% over the first year of a New Presidential year, which would indeed take the SPX down to the 200-DMA. How coincidental?

Sure, I could be like many strategists/analysts and forecast a correction based on a knee-jerk reaction at the first sign of market weakness, but that’s a guessing game I’ll leave for others to perform. I don’t know when a 10 or 15% correction may occur and neither does anyone else despite their efforts to tell us otherwise. Frankly, I don't care either.

Research Report Insight #2

Below are some like-thoughts from Morgan Stanley’s chief equity strategist Mike Wilson and BofA’s Michael Wilson; you can’t make this stuff up folks!

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Let’s not dismiss the offerings from the “Wilsons” folks! For now it is important to recognize that stocks and equity markets don’t grow to the sky in a straight line. They aren’t trees. Mirroring a similar sentiment, don’t be the investor that plants trees in front of their progress, focusing on every little potential headwind and pitfall in the economic/market recovery. These are to-be-expected, not “to-be-planted” as long-term obstacles.

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