Author Archives: Rick Pendergraft

Q2 GDP Not as Bad as Expected, But Still Disappoints

Economists and investors alike were prepared for a terrible GDP reading for the second quarter. The economic lockdowns that were put in place in an effort to halt the spread of the COVID-19 virus were going to take a toll, there was no denying that. The consensus estimate for the quarter was for 35% contraction in economic activity, but the ...

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Earnings Season Kicks Off, Here is the Outlook

Earnings season kicked off two weeks ago with the big banks reporting on July 14. Since then we have gotten a spattering of reports from other sectors with a number of big tech stocks reporting last week. This week is a big one as a number of the FAANG stocks report on Thursday—Facebook, Apple, Amazon, and Alphabet (Google) all report ...

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Keep an Eye on the Sentiment for Silver and Gold

Over the last four months, silver and gold have been on pretty big rallies. Gold gained 26.2% from its low in March to its close on Wednesday while silver gained 96.6% over the same period. The last time silver saw a rally anywhere close to what we have seen in the last four months was back at the end of ...

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Strange Happenings Continue Affecting the Market

Last week I wrote about the staggering gap in the returns for the growth segment of the market and the value segment. The value segment has picked up a little steam in the last few weeks and from July 9 through July 17 the SPDR S&P 500 Value ETF (SPYV) gained 5.17% while the SPDR S&P 500 Growth ETF (SPYG) ...

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Four Sectors Pushing Overall Market Higher

Watching the overall market rebound from the March low has been fascinating and frustrating at the same time. Some stocks have experienced incredible rallies while others have experienced far more modest rallies. The S&P 500 has rallied 47.2% from its March low and it has been less than four months since the market bottomed. The Nasdaq Composite has been even ...

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News Out of the Retail Sector: Layoffs, Store Closures, and Bankruptcy

Traditional brick and mortar retail stores have been among the hardest hit businesses during the current health crisis and economic restrictions. There have been a few traditional stores that have been able to maintain to some degree, but mainly it was companies with a growing online presence before the crisis started—companies like Walmart and Target come to mind. Other retailers ...

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Q2 Earnings Season: Expectations Worst since the Financial Crisis

The COVID-19 virus became known to the world in January and it started spreading around the globe later in the first quarter. By the time the second quarter started the virus had spread to Europe and North America with many countries being forced to limit social interactions. Many parts of the United States issued stay at home orders for non-essential ...

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An Investment Strategy That Pays You to Wait for a Better Entry Price

Over the last few weeks, I have been having a harder time finding stocks that I am willing to recommend to my newsletter subscribers. My process for selecting the stocks I recommend has three components to it—fundamental analysis, technical analysis, and sentiment analysis. Ideally, I find companies with strong fundamental indicators that aren’t overly loved by other investors. As a ...

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Q2: Best Performance in 22 Years, Now What?

After a dismal first quarter which saw the S&P fall by 20%, stocks roared back in the second quarter and the index turned in its best quarterly performance since 1998. As of the close on Monday, with one day to go in the quarter, the S&P was up 18.13%. Despite the huge gain in the quarter, the S&P is still ...

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