Excerpt from Louis Navellier's Marketmail - 04/21/2020
The S&P 500 rose 3.04% last week and is now down only 11% year-to-date, as the market seems to see a recovery beginning earlier in the second half than most expected. NASDAQ soared 6.1% last week and is off only 3.6% YTD. The Dow is up 33% in 25 days, including +2.2% last week, but it was an erratic ride, down through Thursday then up 3% Friday. I recorded multiple podcasts you can listen to via these links:
Monday, April 13 (-328.60 Dow points)
Tuesday, April 14 (+554.29)
Wednesday, April 15 (-445.44)
Friday, April 17 (+704.81)
Yesterday, April 20 (-592.05)
As I mentioned on my Tuesday podcast, the good news is that trading volume is higher on “up” days and lighter on “down” days, which I read as being safe to buy growth stocks. Furthermore, dividend stocks have been rallying for four consecutive weeks, now that the Fed is fully controlling Treasury bond yields.
The biggest threat I see now is deflation, as I explain in my column to the right. Our columnists relish the 30% market gains, but in some cases question the rapidity of the rise. Bryan Perry says the data doesn’t yet justify the market’s euphoria. Ivan Martchev uses two national examples to show that, without an economy, pumping in trillions of dollars doesn’t help much. Gary Alexanderreviews a half-dozen of the latest anti-growth books, while Jason Bodner shows how we (especially he) called these market moves.
A Look Ahead
By Louis Navellier
Crude Oil at $18 Highlights Global Deflationary Threat
Income Mail
By Bryan Perry
Reality Check for the Stock Market
Growth Mail
By Gary Alexander
"Growth" is Suddenly a Dirty Word
Global Mail
By Ivan Martchev
One for the Record Books
Sector Spotlight
By Jason Bodner
Tuning Out the Noise in Favor of the Data