The Stock Market is Setting Up Nicely.
The Stock Market is sure starting to feel depressing these days. The flattening yield curve , the relentless rise in oil prices, lower consumer sentiment, cooling Real Estate , all have the major indices at six week lows. Even Allen Greenspan in a speech today eluded to his growing concern over the " housing bubble " when he mentioned that monetary policy will be increasingly driven by asset prices. The market was spooked by his comment and extrapulated that the Fed may be too aggressive with rate hikes which may throw the economy into stagflation . Were the Fed to raise rates purely to cool asset inflation the danger of stagflation would indeed be real.
We however are happy to see the above concerns start to hit center stage . The market would be set up extremely well if it were to further correct using these issues as an excuse . Our view is that none of these concerns are going to materialize in a significant way over the next 12-18 months. In fact, the Real Estate market may lag, but the slack will most likely be picked up by the forgotten Nasdaq. Asset rotation is a powerful force especially when liquidity flows from a huge asset class (Real Estate) to a smaller more volatile one (Nasdaq). Economic growth (thanks to the stock market wealth effect ) will be maintained by this rotation and by continued consumer spending.
We plan on elaborating on our fundamental views more in future posts, but for an August Friday with most Traders not even around we will save it for later. Suffice it to say that we have our Nasdaq shopping list ready for what we expect to be the best investment opportunity the stock market has delivered in years.
However, we remain cautiously positioned for now and still see no underlying change in the downtrend. A few more weeks and a couple of failed attempts by the immature bulls should be exactly what the doctor orders.
Don't be down , GET DOWN ! ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
We however are happy to see the above concerns start to hit center stage . The market would be set up extremely well if it were to further correct using these issues as an excuse . Our view is that none of these concerns are going to materialize in a significant way over the next 12-18 months. In fact, the Real Estate market may lag, but the slack will most likely be picked up by the forgotten Nasdaq. Asset rotation is a powerful force especially when liquidity flows from a huge asset class (Real Estate) to a smaller more volatile one (Nasdaq). Economic growth (thanks to the stock market wealth effect ) will be maintained by this rotation and by continued consumer spending.
We plan on elaborating on our fundamental views more in future posts, but for an August Friday with most Traders not even around we will save it for later. Suffice it to say that we have our Nasdaq shopping list ready for what we expect to be the best investment opportunity the stock market has delivered in years.
However, we remain cautiously positioned for now and still see no underlying change in the downtrend. A few more weeks and a couple of failed attempts by the immature bulls should be exactly what the doctor orders.
Don't be down , GET DOWN ! ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
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posted by Kleiner Capital Management, LLC. | 1:07 PM
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