Author Archives: Rick Pendergraft

Don’t Blame General Motors, They’re Being Responsible

General Motors announced on Tuesday that it would close seven factories and cut its workforce by 14,000 people. The announcement was met with criticism from President Trump, Senators Sherrod Brown and Rob Portman, and many others. Of the plants that are due to close, four are in the United States and one is in Canada. While politicians can criticize the ...

Read More »

Current Sector Statuses and What They Can Tell Us

With the sharp selling we saw on Monday and Tuesday, some analysts and institutions were declaring that we are in a bear market while others were still saying that we are in a correction. Personally, I don’t really care to waste time on such a distinction. I would rather try to figure out where we are going next and how ...

Read More »

The Next Bear Market May Be the Most Anticipated in History

I have been trumpeting a cautious tone for most of 2018 with concerns about the stock market and whether or not the bull market would continue. I have laid out a number of indicators that support my cautious stance—the jump in the yield on 10-year treasuries, consumer confidence being too high, investor sentiment being too optimistic, etc. If you haven’t ...

Read More »

I Wouldn’t Look for Oil to Move Too Much Lower

One of the big stories in the investment world over the last week or so has been the sharp decline in oil prices. The commodity has seen prices fall for 12 straight days and that is longest losing streak ever. There is also a weekly losing streak of six straight weeks, but that isn’t a record. While the financial news ...

Read More »

Don’t Get Too Excited About the Post-Midterm Jump

The overall market jumped sharply higher on Wednesday after the results of the midterm election results were known. Some analysts were speculating that the jump was due to the Republicans retaining control of the Senate while others were speculating it is because the Democrats took control of the House. Personally, I think the reason for the big jump was simply ...

Read More »

S&P 500 Earnings Report Card: Mid-Season Results

We are just over halfway through the third quarter earnings season and, as is always the case, there have been positive and negative surprises. But overall, how are companies doing? Through October 30, 279 members of the S&P 500 had reported. Of those reporting, 77% had beaten their EPS estimates, 9% had matched, and 14% had missed. The 77% beating ...

Read More »

October’s Downturn in Stocks Suggests We Are in Risk-Off Mode

October was an ugly month for stock indices around the world and the domestic ones were no exception. The four main U.S. indices all dropped significantly, and eight of the 10 main sectors moved lower. The few sectors and asset classes that moved higher in October are all considered “defensive” investments. Looking at the indices first, we see that the ...

Read More »

Think You’re Having a Bad Week? Jeff Bezos has lost over $20 Billion in the Last Five Days

When Amazon (Nasdaq: AMZN) reported earnings last Thursday evening, the company disappointed investors when its revenue fell short of analysts’ estimates and the company issued a fourth-quarter outlook that was below analysts’ expectations. Since the earnings report the stock is down almost 16% as I write this. The stock dropped 7.8% on Friday, it dropped another 6.3% on Monday, and ...

Read More »