• 303 days Will The ECB Continue To Hike Rates?
  • 303 days Forbes: Aramco Remains Largest Company In The Middle East
  • 305 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 705 days Could Crypto Overtake Traditional Investment?
  • 710 days Americans Still Quitting Jobs At Record Pace
  • 712 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 715 days Is The Dollar Too Strong?
  • 715 days Big Tech Disappoints Investors on Earnings Calls
  • 716 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 718 days China Is Quietly Trying To Distance Itself From Russia
  • 718 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 722 days Crypto Investors Won Big In 2021
  • 722 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 723 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 725 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 726 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 729 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 730 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 730 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 732 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Stocks Continue To Have An Opportunity Cost Advantage

Investment A vs. Investment B

Investment capital is always looking for a home. Stocks continue to benefit from easy money policies around the globe. From Reuters:

"Money is continuing to pour into the (equities) market because of low interest rates, and although stocks are somewhat expensive they're not overly expensive," said Stephen Massocca, chief investment officer at Wedbush Equity Management LLC in San Francisco.

Data Says Low Rates May Last

If inflation starts to rear its ugly head, the Federal Reserve will be forced to raise interest rates. Recent data says that does not appear to be an imminent scenario. From The Wall Street Journal:

"The price index for personal consumption expenditures, which is the central bank's preferred inflation gauge, rose 0.2% in January from a year earlier. That followed annual growth of 0.8% in December, 1.2% in November and 1.4% in October, the Commerce Department said Monday. It was the lowest reading for headline inflation since October 2009, when prices rose just 0.1% from a year earlier following seven months of year-over-year price declines as the 2007-09 recession ended."

The Big Picture

This week's stock market video examines the bigger risk-reward picture given last week's stall in equity prices.

Investment Implications - The Weight Of The Evidence

From a January 30th CCM video clip when the S&P 500 was trading at 1,994:

"We know with this 100% certainty... if we are to go into a three-week correction, a three-month correction, or a three-year devastating, hard-to-recover-from bear market, it is not physically possible for any of those three things to happen until the S&P 500 makes a lower low on a closing basis (below 1988). As you can see, it has not made a lower low..."

The S&P 500 never closed below 1988; today it sits at 2117, or 123 points above the January 30th close, which illustrates the usefulness of simple support and investment guideposts. Today's "be patient with our stocks" guideposts include 2090 and 2064.

$SPX S&P 500 Large Cap Index INDX


Back to homepage

Leave a comment

Leave a comment