“Now, over the medium and long term, the Fed’s average inflation target means that when cyclicals start to outperform, and when yields begin to rise, both those rallies will last longer…” writes Tom Essaye of The Sevens Report newsletter. Click here to read the full article.
”In a televised meeting, Russian President, Vladimir Putin, stated that Moscow’s Gamaleya Institute successfully developed a ‘safe and effective’…” writes The Sevens Reports Tom Essaye. Click here to read the full article.
Tom Essaye, founder of Sevens Report Research, thinks most of Friday morning’s rally can be attributed to a “typical oversold bounce,” though he does note there are hopes global governments will unveil economic stimulus plans over the weekend. That began to take form as Germany announced such a fiscal stimulus package. And on a more positive note, Thursday’s drop could be a sign of investor capitulation, according to Essaye…Click here to read the subscribe.
And don’t forget about the Nevada caucus, where Bernie Sanders scored a big victory. “Politically, Sanders won the Nevada Caucus with more than 40% of the vote, implying his base is bigger than thought, meaning he might be a more…” writes The Sevens Report’s Tom Essaye. Click here to read the full article.
According to Sevens Report, the two factors that could reverse the upward trajectory of valuations would be stalling economic growth and higher interest rates. Until those occur, the rally is expected to shoot up to “20 times earnings, which equates to about 3,500 in the…” Click here to read the full article.
“This rally now has a life of its own. I do want to caution that any pullback that occurs (and there will be one) likely will be a bit more painful than before and on the order of 5% to 10%, given how stretched the market has become…” writes Tom Essaye of the Sevens Report newsletter. Click here to read the full article.
“The geopolitical fear bid supporting the gains in the energy markets in the front half of the week vanished much quicker than most analysts anticipated…” says Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.
The Sevens Report’s Tom Essaye underscored the importance of the development, likening the killing of Soleimani “to a foreign government assassinating our Secretary of Defense and our Secretary of State. “Point being, this was significant action. Retaliation from Iran is expected and all…” he wrote, adding that a regional war wasn’t priced into the markets and could easily push the S&P 500 down 5% to 10% from a reaction to the spike in oil prices alone. Click here to read the full article.
“U.S./China trade talks are officially scheduled for October 10 and 11th and rhetoric from both sides remains positive ahead of the event. “At this point, a pretty comprehensive…” writes The Sevens Report’s Tom Essaye. Click here to read the full article.
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