Morning Commentary
Market resolve is easier when there are more buyers than sellers, and that’s been the case of late with respect to equity funds, which have seen an avalanche of inflows since the November election. Consider that from January 2016 to October 2016 investors pulled $117.2 billion from equity funds, of which $109.5 came from domestic funds (money earmarked to be invested in shares of American businesses).
That all changed in November when $23.0 billion poured into equity funds, of which $21.4 billion was committed to domestic funds. Since November 2016 through March 1, 2017, $114.7 billion has flowed into equity funds, of which $76.8 billion has gone into domestic funds. This is very important considering in the past, Americans eschewed domestic stocks for foreign investments.
The market has struggled this week, especially small cap names, which have been huge winners in the past year, and since the November election, but is now only fractionally higher for 2017 after declining six straight sessions.
The index popped the day after President Trump addressed the Joint Session of Congress, but now the losing streak is taking the index near a key trend line marker. It’s important that it holds, as these stocks have higher Beta than blue chip names, which means the swoons can be sharp.
The good news is those sharp and swift declines have been amazing buying opportunities.
Jobs Report
Headlines:
We got a strong jobs report this morning that didn’t match ADP’s report on the headline, but more importantly, it confirmed the rebound in jobs in key areas that will move wages higher and have a greater socioeconomic impact.
Blue collar work is coming back:
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4/18/2024 1:37 PM | Didn’t Break Down |
4/18/2024 9:40 AM | MARKET OFF SCRIPT |
4/17/2024 1:59 PM | Facing Pressure |
4/17/2024 9:37 AM | POWELL STILL WANTS TO HELP |
4/16/2024 1:35 PM | Muted |
4/16/2024 9:42 AM | FEAR ARRIVES |
4/15/2024 1:17 PM | Making a Statement |
4/15/2024 9:45 AM | Equal Opportunity Drubbing |
4/12/2024 1:37 PM | Pressure Overall |
4/12/2024 9:42 AM | WHO YA GONNA CALL? |
4/11/2024 1:38 PM | No Urgency |
4/11/2024 9:27 AM | Tough Sledding |
4/10/2024 1:22 PM | Hang In There |
4/10/2024 9:51 AM | HERE COMES THE LATEST RATIONALE FOR PERSISTENT INFLATION |
4/9/2024 1:56 PM | Fighting the Trend |
4/9/2024 9:46 AM | NEXT TIME, MAKE IT A HOLIDAY |
4/8/2024 9:45 PM | Cautious Feel |
4/8/2024 7:19 AM | IT’S ECLIPSE DAY |
4/5/2024 1:51 PM | Higher and Cheaper |
4/5/2024 9:23 AM | MARKETS REEL ON BIDEN’S ISRAEL ULTIMATUM |
4/4/2024 1:42 PM | Stocks Bounce |
4/4/2024 9:31 AM | ESCAPING GRAVITY = ESCAPING REALITY? |
4/3/2024 1:41 PM | Cuts Not Soon |
4/3/2024 9:33 AM | A LITTLE LESS SWAGGER |
4/2/2024 1:16 PM | Under Pressure |
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