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“Find something you’re passionate about and keep tremendously interested in it.” - Juia Child

Market Commentary

Simple- only own companies with revenue growth with accelerating margins

• I am looking forward to The MoneyShow February 17-19th in Las Vegas. I will be speaking three times there. I am interested in the sentiment of the large crowd, and hearing from the other speakers.
• “Let’s Give Growth a Chance” – is my idea for a new song for the new administration. It will solve our debt problems. Just like my Magnet model looks for revenue growth, we are not focused only on cost cutting.
• Over half of all public company’s stock prices are now above their own 200 day moving averages. This is up dramatically from only 25% from last year. Money has already begun to shift out of the handful of favorites. This is positive for the markets just not for the indexes.
• The new 52-week low list expanded again. The advance/decline lines have once again deteriorated and look too weak for comfort. This is a dangerous market. Do not chase anything here, be patient – even great stocks pull back.
• The exaggerated moves being made by large cap quality companies is making a mockery of fundamental analysis. Up and down gap reactions to earnings will pull more investors out of the market for individual stock holdings.
• The Trust 200 Index is up 6.6% already for the year. Imagine just investing 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.

Here is a link to the FOX Business segment from 9/30/24 where I share my current best companies to consider and overall market views. Applovin (APP) was $93, today it is $375 and was profiled in Investors Business daily this week. Magnet brings us in early.

Economic data and market clues

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 pro-growth and America first policies of the new administration is the real key. It has kick-started small business, consumer, and stock market optimism. Despite obstacles and potholes, the environment is now set for winners to win. Just do not count on a straight line up.

Magnet® :

Byrna Tech BYRN

Innodata INOD                  

Super MircoSMCI            

FACTS:

Technip FMC FTI

Uber Tech                   UBER

Vista Energy ADR       VIST

More By This Author:

No Need To Over-Reach Now- There Are Enough Great Looking Companies.
“Let’s Give Growth A Chance” – A New Song For The New Administration
Do Not Get Caught Holding Story Stocks- The Market Is Unforgiving