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Showing posts from April, 2014

April 26, 2014 – Weekend Market Comment

April 26, 2014 – The Nasdaq lost -1.75% on Friday to lead the market lower as investors continue to rotate out of equities and move to a risk off stance. The Nasdaq is full of high beta stocks and leads on the way up and on the way down.  As I said in the April 13 comment this is a time to get ready for "sell in May and go away" and this is not a good time to put new capital to work. The only sectors that are up recently are energy and utilities. Meanwhile consumer discretionary stocks lead the market lower. Also although technically the S & P 500 is still up for the year 2014, however the smaller cap indexes like the mid cap 400 and the Nasdaq are in fact already at negative return for the year. In short when large cap is leading and defensive stocks like utilities are leading it is a sell off. Overall we are in a bull market still and there will be some bargains to be had after this sell off but there is no sense trying to catch falling knives. There will be plenty of…

April 13, 2014 – Weekend Market Comment

April 13, 2014 – The wrenching sell-off in U.S. high-growth technology and biotech shares could leave investors braced for more than a minor pullback when earnings pick up speed this week. First-quarter earnings estimates have fallen sharply as many companies have blamed the brutal winter for weak outlooks. With high-valuation stocks under pressure, earnings could be subjected to even more investor scrutiny than usual.

Of course if your read my last Market Comment all of this was no surprise, in that posting talked about the rotation by large cap funds from high risk equities toward bands and low beta equities. In other words out with the stocks like bio-tech and in to consumer staples and utilities. All in preparation for a big "Sell in May and go away cycle". Also being where we are in the Presidential cycle it is very likely 2014 will not be as good as 2013.

So the best performer this week was the DOW, followed be the S & P 500 then the Russell2000 and wost performi…