Technology was the story of the day on Tuesday.
Apple stocks hit record-breaking, leading technology stocks and a wider market after the company introduced new operating systems for its products at its worldwide developer conference.
These moves helped U.S. stocks recover from nightly concerns over comments from White House trading adviser Peter Navarro Fox News “History” about a trade deal between the US and China, which suggests that the deal is completed. Navarro later explained that his comments were “wildly taken out of context” and “had nothing to do with the Phase I trade agreement that is ongoing.”
Market watchers, including Jim Cramer of CNBC, see more runway for certain groups.
Here’s what they said on Tuesday:
Cramer, the presenter of Crazy Money, said his Covid-19 stock index, which can be bought during the coronavirus pandemic, has reached a total market capitalization of $ 12 trillion:
“These are all companies that succeed during a pandemic. I would think, given that this was my first pandemic, that nothing would be good in a pandemic, but instead, Tractor supply is incredibly good in a pandemic because people I want to go on and on, and companies whose stocks just really appear, – These are companies that do better during their stay. at home, at work, at home. I mean, it’s amazing how some of these companies work well. And they should not be healthy, but the market has nothing to do with the US economy. small and medium businesses. “
“Fast and furious Fed”
Allie McCartney, managing director of UBS Private Wealth Management, said it would be difficult for investors to deal with the so-called “fast and furious Federal Reserve”:
“The market, because it was mainly quarantined, was caused by our fast and furious Federal Reserve System, which was followed by support from the Federal Reserve around the world, which is unprecedented in scale and unusually targeted. There are also two other things that drive the market, and I think it will continue to produce volatility, one of which has been confirmed [Monday] a night that continues with conversations and tension and volatility around the election. Chinese rhetoric will pay most of this. Taxation will also pay most of this. Another thing is just the second wave. Now, obviously, we saw significant second waves both in this country and in Asia, but this does not seem to affect the market in the way many of us thought it would happen. And, again, this just goes back to the Fed. If you look at the number of incentives, the amount of money – M1, the money supply – which are invested in this economy, then over the past three months our money supply has grown by 34% over the year. There is a strong correlation between money growth on an annualized basis and, unsurprisingly, multiples, valuation and stock prices. And again, [a] a fast and furious Fed is very hard to fight at the micro level. ”
“The biggest mistake an investor can make”
Leo Kelly, CEO of Verdence Capital Advisors, emphasized the importance of discipline:
“As long as the pace of change continues to improve, I think it is still sustainable. In other words, when we look at economic data, although they are not as good in any indicators as they were, they are improving, it is constantly improving, and this rate of improvement is really accelerating. More importantly, in the world of science, we see that this improvement is significant. Therefore, when we look, be it vaccines or drugs, in this decision there are so many things all at once – money, mental abilities. It is developing very, very fast, and it gives hope that we will open faster and we will have a much faster recovery. Add to this the Fed, add to that the incentive and all the capital that flows into the system, and it is not very surprising that we have a recovery. Now, in terms of pricing, there are obviously market pockets that have really taken off and are starting to reach extremes. There are some significant gaps in assessing the market between specific sectors and industries, and I think that investors simply need to be very smart and disciplined at that particular time. I think that the biggest mistake an investor can make is to try to compare the amount of news flow with the amount of activity in their portfolios. This is the point where you have to be smart. Good to have some money aside. Expect volatility and remember [three] things: your distribution, your goals, and what is your assessment of the market. Discipline is a challenge here, especially after a run it matters. ”