NICE. The Three Catalysts Sending Stocks to the Moon It was a really, really good day for the markets https://investorplace.com/hypergrow...e-three-catalysts-sending-stocks-to-the-moon/ (BOLD is my opinion OR what I consider important content) "Key Takeaways: Stocks continue to rally on the belief that President-elect Trump’s policies will be good for the markets. While many initially thought that Trump’s tariffs would be inflationary, several experts have begun to second-guess that consensus belief. Earlier this afternoon, the U.S. Federal Reserve announced its decision to cut interest rates by 25 basis points. Plus, Fed Board Chair Jerome Powell said that rate cuts are likely to keep coming. Several stocks absolutely soared today, many on the back of impressive quarterly earnings reports. More than 50 different stocks rallied 20%-plus today. About 15 rallied more than 30%. Seven surged more than 40% higher. Five rocketed over 50%, and two stocks completely doubled. Keeping with the theme of the week, stocks’ fast-and-furious rally continued again today. Indeed, it was a really, really good day for the markets. Sure, at the headline level, the Nasdaq only climbed about 1.5%, while the S&P 500 rose just 0.7%. That’s a pretty normal “good day” for Wall Street; nothing to write home about. But if we look underneath the hood, we see that the price action at the individual stock level was quite impressive. More than 50 different stocks rallied 20%-plus today. About 15 rallied more than 30%. Seven surged more than 40% higher. Five rocketed over 50%, and two stocks completely doubled… All in one day. That is some truly sensational price action. And from what we can tell, three big catalysts are driving this bullishness onward. The ‘Trump Bump’ Is Leading Stocks Higher This Week The most prominent catalyst lighting a fire under stocks this week – what folks are calling the ‘Trump Bump.’ Stocks continue to rally on the belief that President-elect Trump’s policies will be good for the markets. While many initially thought that Trump’s tariffs would be inflationary, several experts have begun to second-guess that consensus belief. Bloomberg’s Anna Wong is among those dissenters. In a research note this week, Wong laid out what she believes is the most plausible path forward. She anticipates that Trump won’t impose sweeping universal tariffs, which would limit their inflationary impact. And she isn’t alone in that thinking. In other words, many economists are now shifting their perspective, endorsing the idea that Trump’s tariffs will likely cause some reinflation but nothing worrisome. As a result, Treasury yields actually dropped today as markets placed faith in a Goldilocks outcome – pro-growth policies that don’t spur inflation. Rate Cuts and Strong Earnings Tee Stocks Up to Rocket Rate cuts are also fueling the market’s bullish fires. Earlier this afternoon, the U.S. Federal Reserve announced its decision to cut interest rates by 25 basis points. Plus, Fed Board Chair Jerome Powell said that rate cuts are likely to keep coming. Specifically, he said that rates are still restrictive and that inflation still looks to be falling toward 2%. Though he emphasized the central bank’s need to keep a close eye on the incoming data and respond accordingly, he heavily implied that rate cuts should continue. And last but not least – strong corporate earnings. Several stocks absolutely soared today on the back of impressive quarterly earnings reports. For example, marketing firm AppLovin (APP) surged more than 40% after management noted how its new AI-powered ad placement tool, AXON, powered much stronger-than-expected revenue growth at the firm. Housing tech company Zillow (Z) popped more than 20% after it reported impressive growth, despite working against such a tough housing market backdrop. Ride-hailing titan Lyft (LYFT) soared about 25% after it reported record ridership numbers. And quantum computing firm IonQ (IONQ) ripped 35% higher after it announced multiple new quantum application development partnerships. This impressive outperformance is driving stocks far higher. And we don’t think the gains are over just yet. The Final Word Between these three catalysts – the Trump Bump, rate cuts, and strong earnings – investors are very optimistic about the outlook for stocks over the next 12 months. Now, it may be overstated in the short term. Things do feel a bit frothy after today’s big rally. But so long as all three catalysts remain alive and well over the next several months… stocks should keep powering higher. As such, we are very bullish on stocks for the foreseeable future. " MY COMMENT Agree completely.
AND. On Thursday’s Twin Transatlantic Rate Cuts The latest moves extend the status quo—a fine thing. https://www.fisherinvestments.com/e...ary/on-thursdays-twin-transatlantic-rate-cuts (BOLD is my opinion OR what I consider important content) "The “special relationship” between the US and UK is one of the most time-honored entities in geopolitics, and it took a fun turn Thursday: The Fed and Bank of England (BoE) cut rates a quarter point each, on the same day. This never happens on the same day! The Fed always does its thing Wednesdays, while the BoE has long been Thursday’s child. But the election pushed our friends at 20th and Constitution back a day, so here we are. Twin rate cuts, no surprises and nothing earthshattering for stocks. Markets had long penciled in these small cuts, and neither bank seems in the mood to defy expectations. In the UK, BoE Governor Andrew Bailey seemingly doesn’t want to rock the boat at a time when markets remain a bit nervous over last week’s Budget. And the Fed was probably always going to do whatever investors had penciled in prior to Tuesday’s elections, lest it appear political by throwing a curve ball right after the vote. Best save surprises for when things simmer down a bit, to the extent either bank thinks market-based projections are off kilter. At any rate, we don’t think either decision is an economic or market gamechanger. Markets are forward-looking, and considering these were consensus expectations, it is fair to say both moves were pre-priced eons ago. And as for the economies, both countries were growing just fine at higher rates, and inflation has cooled back near their central banks’ targets. Neither needs lower rates, in our view, but slower inflation gives the latitude to do so. We doubt it is major stimulus, considering banks’ funding costs in both nations were well below benchmark overnight rates—the very reason hikes didn’t bite hard. And we doubt a quarter point makes an iota of difference to banks’ decisions on whom to lend to. But would-be borrowers like lower rates, so even if this only boosts sentiment a smidge, it isn’t a bad thing. More interesting, to us, are the haps in long rates. In both nations—and globally—long rates rose after the Fed cut rates for the first time in September. We have seen a lot of chatter about politics driving this, what with last week’s UK Budget projecting increased debt issuance and everyone sure President-elect Donald Trump will push up US deficits with vast tax cuts once in office. Perhaps these factors affected US and UK rate movement relative to other nations, but they don’t explain similar volatility in Canadian and Australian rates. Or throughout Continental Europe. More likely, to us, is that bond rates reflect the popular view that rate cuts are stimulus and will breed faster growth and inflation—a point Bailey underscored today, calling UK inflation “stickier” than first forecast. We think this popular viewpoint overestimates rate cuts’ stimulative effects, but its proliferation seemingly argues against much lower long rates for the time being. So we wouldn’t read much into yields’ sizable drops today. Mostly, they just undo volatility from earlier in the week. Maybe the effect lasts a little longer, maybe not. To us, it is all just a friendly reminder from markets that bonds can encounter sentiment-fueled wiggles, too. They have less expected volatility than stocks, overall and on average, but they aren’t immune to swinging emotions and traders’ occasional whims. Overall, then, this week’s twin transatlantic rate cuts largely extend the status quo. Economies growing before the cuts should continue growing. Markets that were doing fine before cuts should keep doing fine. We wish we could add that the world would get over its fascination with central bankers when people see that not much has changed, but we have been doing this long enough to know better." MY COMMENT This BULL MARKET has a very long runway ahead of it. There will be bumps along the way. BUT....the PROBABILITIES are looking as good as they can.
In reference to the Lori/TSLA posts.....I think this has happened to most of us at one point in our investing timeframe. Another point of view, I never owned a single share of TSLA....other than what was within an index fund. I remember when you could not look at any financial media without seeing massive coverage of TSLA. It was everywhere you looked and hyped like crazy. There were many investors that got in and made a lot of bank on it for quite some time. I never did. I came close at one point early on, but just never did so. I could look back on that or any number of stocks and feel that "missing out" feeling. This can sometimes lead to bad decisions. You made a decision which was based on your personal situation at the time and clearly related to what was best for your financial situation. That is what matters and was likely the right decision. Remember, it is always about YOUR plans. It is always easy to sit back and discover the buyer/seller remorse. Sometimes it can lead to chasing and changing your plan based on nothing fundamental, but rather emotions.
Yes, guys, I stand by the decision. You obviously can't look back in this game. It was the right thing to do. BUT...the timing was so bad, I'm allowing myself a little moan lol.
LOL Lori I see your post as somewhat tongue in cheek and somewhat what your brain is telling you in reality. If it was me it would NOT bother me in the slightest. You got the benefit of paying off debt. Which is a big lifestyle WIN for you. You also got the ability.....hopefully....to be able to transfer some of that debt service to monthly investing in the markets. In addition.....what you are seeing now is simply......the short term. You have decades ahead of you as an investor. As an investor....you make your choice and move on. This is not a one time locked in stone event. If you like TSLA....you can always revisit it anytime you wish. Plus.....I would bet that the rest of your holdings are BOOMING. The most important take going forward......try to follow up on the part of your plan that was to use the lower credit card payment.....to put more into the markets.
Yes, Lori....you are allowed to do that....and it is a natural feeling to have. It also goes to show how we are all subjected to the daily noise of "we should have known." We are inundated with it so much that at times we all think we should have known what may or may not happen. The truth is usually the opposite.
It is kind of like the pundits and experts all coming out now and telling us why the market is doing well. Well, I and many other have been racking up gains for a long time now, so they are late to the party once again. It has been a combination of things. As usual, earnings have been doing fine for awhile now. Even way back when it was being spouted as the worst earnings to prepare for. Simply did not occur as they predicted. The economy was going to crater. Did not happen and companies made it through fine. Then it was our friends at the FED. We all put up with that doom and gloom for how long? Again, we navigated through it despite the end of times. Finally, the election and it's uncertainty was resolved and taken off the table. That's it in a nutshell. Yet, now they all act like they knew it all along. They didn't. In fact, they were wrong on most of it. It always amazes me how they have these great predictive powers. If they really were top notch, why not just predict this thing out to infinity and do us all a favor. The point is they don't know.
And to all of our Veterans. Thank you. I greatly respect and honor your service to this country. It is worthy of recognition everyday.
One last comment for Lori and others. ACTUALLY one reason you invest and save is to use that money when it is needed for some necessary and perhaps out of the ordinary reason. Over many years I have dipped into investing funds to buy a house, or buy a new car, etc, etc....with no debt. There will be times in life for any investor when some of that money is needed.....and it is really nice to have it available. The main thing is to have the WILL- POWER to not dip into it too often and hopefully only at a very necessary time. Yes random timing can suck.....but.....to get the use of the funds when you need is more important.
I ended about as expected today.....a medium loss in my stocks. I also got beat by the SP500 today by 1.05%. Just a go nowhere day for me from the open.
I agree with W on sometime you have to tap in. I had to sell off some VGT at pretty close to the market bottom to cover the difference I needed for 20% down on my house. Earlier in the year I sold off some AMD to buy a family 4 door car outright. VGT has doubled since then! On the other hand I sold AMD for about the same price or a little more than what it's at now. Plus this triggered my move to put pretty much all the amd stock into NVDA which has paid off for me. You win some, you lose some, just make sure you win more than you lose!
That is the perfect summary for LORI and everyone else....TireSmoke. Every one of us has bought or sold something at some time that did not work out. The key is to simply move on from there......and....keep racking up the gains as you go forward. Look at the MASSIVELY BAD investments that Warren Buffet bailed out of this year. I dont think LORI made a bad move....she had a very good reason for selling TSLA when she did. I would not call her buying or selling TSLA a bad move........simply a necessary and expedient move at the time. Look at earlier this year when I bought SMCI. In hindsight a VERY bad move......but.....when I sold it all to raise funds to go into NVDA......a VERY good move that has paid off MASSIVELY. You never know.....especially over the short term.
I LOST MONEY today.....meanwhile. Dow, S&P 500 close above key milestones as Tesla, bitcoin surge https://finance.yahoo.com/news/live...estones-as-tesla-bitcoin-surge-210057604.html (BOLD is my opinion OR what I consider important content) "The Dow and S&P 500 both closed above key milestones Monday as Wall Street built on a roaring post-election rally. The "Trump trade" again took the spotlight in markets, with bitcoin (BTC-USD) nearing $87,000 and shares of Tesla (TSLA) jumping for a fifth straight session. The Dow Jones Industrial Average (^DJI) led the way higher, up almost 0.7% to close above 44,000 for the first time ever, while the S&P 500 (^GSPC) closed above the 6,000 milestone. Both indexes are coming off their best week of the year, capped by record highs. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) closed just above the flat line as Nvidia (NVDA), Apple (AAPL), and Meta (META) lagged. Small-cap stocks also rose, with the Russell 2,000 (^RUT) hitting its highest level since November 2021. The markets opened on Veterans Day near all-time highs thanks in large part to expectations for lower corporate taxes and deregulation from President-elect Donald Trump. The Federal Reserve's latest interest rate cut also buoyed the mood. Bitcoin hit a record amid high hopes for a crypto-friendly Trump administration and Congress. Dogecoin (DOGE-USD) and other smaller digital currencies also gained as traders bet on Trump's promise to make the US a leading light in crypto. That optimism also helped push crypto-related stocks higher, building on sharp gains booked since the election. Trading platform provider Coinbase (COIN) rose over 20%, while shares in peer Robinhood (HOOD) put on over 10%. Tesla stock — another "Trump trade" hot spot — continued to climb, up over 8%. The electric vehicle maker's stock hit its highest close in over two years on Friday, topping $1 trillion in market value amid optimism over CEO Elon Musk's relationship with the incoming president. At the same time, doubts about the stock market rally's staying power are starting to emerge. Wall Street is waiting for October consumer inflation data on Wednesday for pointers to the path of rates. Last week, Chair Jerome Powell stayed mum on the Fed's thinking in the face of Trump policies — like promised tariffs — that could keep price pressures in play. MY COMMENT Very good short term action.....but...what I want to see in a nice year end RALLY that covers the last couple of months and propels us into the new year. No doubt....we are going to see a lot of NEGATIVE OPINION over the next couple of months regarding the economy, inflation, world events, and the markets. Do I care.......NOPE.
Considering the source of this comment....I dont know if this is a good thing or a bad thing. Cathie Wood predicts Trump policies will 'turbocharge' US economy more than Reagan Revolution Trump supporter and Ark Invest CEO Cathie Wood hails pro-growth future in post-election message to investors https://www.foxbusiness.com/busines...turbocharge-us-economy-more-reagan-revolution NOT someone that I respect much as an investor....but I have to TOTALLY AGREE with what she has to say in this opinion piece......as an investor that lived and invested through the REGAN ERA and saw first hand how those policies worked.
Nvidia CEO Jensen Huang has a unique philosophy on time and shared why he does not wear a watch. Speaking at a tech event, Huang, whose AI chip company Nvidia has seen its valuation soar through the roof in recent years, stressed the importance of living in the moment. “Very few people know this, but I don't wear a watch. And the reason why I don't wear a watch is: now is the most important time. You'll be surprised; I'm not at all ambitious. I don't aspire to do more. I aspire to do better at what I'm currently doing. I'm not reaching for more; I wait for the world to come to me. People who know me also know Nvidia doesn't have a long-term strategy. We have no long-term plan. Our definition of a long-term plan is What are we doing today?” Above is an excerpt from an online article. I find the psychology behind being successful very interesting. When you have it all what drives you to keep excelling!? To say Nvidia doesn't have a long term strategy is a stretch but we have all witnessed how fast this company pivoted from a video card company for gaming to a AI hardware powerhouse.
Yes.....TireSmoke. Perhaps the sort of thinking above is why the company has been so successful identifying and adapting to the quickly changing market as they transitioned from gaming to self driving vehicles to AI. They are NOT tied down in their thinking to some pre-determined long term plan. They are able to quickly adapt and move with the business trends.
Here is my HD earnings.....a BEAT. Home Depot’s sales are improving, but it says consumers are still cautious about spending https://www.cnbc.com/2024/11/12/home-depot-hd-earnings-q3-2024.html (BOLD is my opinion OR what I consider important content) "Key Points Home Depot posted quarterly earnings and revenue that beat estimates. Sales got a boost from the company’s acquisition of SRS Distribution, along with hurricane-related repairs and warmer-than-usual weather in much of the U.S. Still, the company said consumers are being cautious after a period of high interest and mortgage rates. Home Depot’s quarterly sales rose more than 6% year over year, as it folded in a newly acquired business and hurricane-related repairs and better weather in many parts of the country boosted demand for home improvement supplies, the company said Tuesday. The retailer also raised its full-year outlook to reflect its better-than-expected third-quarter results and some increased hurricane-related demand in the current quarter. It now projects total sales to increase about 4%, including the impact of acquiring SRS Distribution. It previously expected total sales to rise by between 2.5% and 3.5% for the year. Both of those outlooks include a lift from a 53rd week in the fiscal year and an approximately $6.4 billion contribution from SRS, which sells supplies to professionals in the roofing, landscaping and pool businesses. The company expects comparable sales to decline about 2.5% for the 52-week period. Home Depot previously projected that industry metric, which includes the company’s website and stores open for more than a year, would drop by 3% to 4% compared with the prior fiscal year. In an interview with CNBC, Chief Financial Officer Richard McPhail said consumers are still deferring purchases as they wait for lower mortgage rates and borrowing costs andexpress caution about the economy. “There is pent-up demand for projects,” he said. “Our customers tell us that their lives are changing. Their families are growing. They’re upsizing, they’re downsizing. They need to move for a job. There is demand for remodeling, and they are putting it on hold until they see a more favorable financing environment. And so the demand is there, the question is, when it’s unlocked.” Home Depot customers have continued to put off projects, even though they’re in good financial shape, he said. About 90% of the company’s do-it-yourself customers own their homes. Here’s what the company reported compared with what Wall Street expected for the three-month period that ended Oct. 27, according to a survey of analysts by LSEG: Earnings per share: $3.67 vs. $3.64 per share expected Revenue: $40.22 billion vs. $39.32 billion expected Home Depot shares rose more than 1% in premarket trading. Home Depot’s sales have gotten hit by economic factors, as higher interest rates slow housing turnover and more than two years of high inflation makes homeowners less willing to spring for discretionary purchases and do-it-yourself projects. The company had cut its full-year forecast for comparable sales in August, citing consumer uncertainty. Those dynamics persisted in recent months, McPhail said. Home Depot’s net income for the fiscal third quarter dropped to $3.65 billion, or $3.67 per share, from $3.81 billion, or $3.81 per share, in the year-ago period. Revenue climbed 6.6% from $37.71 billion in the year-ago period. Comparable sales fell 1.3% in the quarter across the business. That’s better than the 3.3% drop that analysts expected, according to StreetAccount. The metric fell by 1.2% in the U.S. It marked the eighth consecutive quarter of negative comparable sales at Home Depot, though the smallest drop since the string of declines began. That performance has not weighed on the stock this year. As of Monday’s close, Home Depot’s shares are up about 18% this year, trailing the approximately 26% gains of the S&P 500. The company’s stock finished Monday at $408.29 a share, bringing its market value to $405.55 billion. Shoppers visited Home Depot’s stores and shopped online about as much as they did in the year-ago period. On average, customers spent $88.65 during those transactions, almost the same as the $89.36 average ticket in the year-ago quarter. Those numbers do not include the SRS acquisition and new stores, which contributed to the company’s total sales gains. Home Depot expects to open about 12 new stores this fiscal year, which ends in early February. Weather had a short-term benefit for Home Depot in the quarter, McPhail said. As warmer and dryer weather extended the summer season, customers bought outdoor items like grills or purchased paint for projects, he said. Sales related to hurricanes Helene and Milton contributed about one half a percentage point of sales growth to the quarter. Customersbought items to prepare, such as generators, batteries and plywood, and then purchased items for repairs, such as building materials. Even as Home Depot reports modest growth, some investors have bet the company will see stronger sales in the near future. The Federal Reserve approved its second consecutive interest rate cut last week, a move that shapes what banks charge for consumer debt – such as mortgage rates and the loan a homeowner might take out for a remodeling project. Housing prices remain high and the age of U.S. housing stock continues to drive repair and maintenance projects. Plus, Home Depot has chased bigger business from home professionals, such as contractors and roofers, to drive sales. Earlier this year, Home Depot acquired SRS Distribution, a Texas-based company, in a $18.25 billion deal, the largest acquisition in the home improvement retailer’s history. Still, McPhail added, it is difficult to predict when consumers’ mindset will change and spark higher housing turnover. And he noted mortgage rates have actually increased since the September meeting where the Fed cut rates for the first time since the early days of the Covid pandemic. “The good news is housing turnover may not be able to get any worse,” he said. “The worst of the decline in housing turnover is probably behind us. Now, the question is, ‘What unfreezes it and at what point will that happen?’” The coming year could also bring price pressures for Home Depot, just as inflation cools. It would be among the retailers that could face higher costs if President-elect Donald Trump follows through on plans for tariffs on imported goods, especially those from China. McPhail declined to say what percentage of Home Depot’s goods come from China, but he said most of its supply comes from North America. He said Mexico is “a great source of goods for us.” “We do source from several Asian countries, so we’re watching it closely,” he said. “We’ve been focused on diversifying sourcing for years, and we’ll continue to assess sourcing decisions going forward.” Some retail leaders, including the CEO of E.l.f. Beauty, have said they may have to raise prices because of tariffs. Footwear maker Steve Madden said it will reduce the goods it imports from China by as much as 45% over the next year. Along with weather, the holiday season has fueled sales for Home Depot. It sells a wide range of decor, including many different artificial Christmas trees. Since the company’s 12-foot skeleton, Skelly, became a viral sensation over Halloween, Home Depot has debuted other eye-catching – and often oversized – decor, including an 8-foot Santa Claus and a large animated reindeer. “I don’t think there are many neighborhoods in the U.S. that don’t have our Home Depot giant outdoor decor,” he said. “So we’re coming to your neighbor’s front yard, and you don’t want to be outdone.” MY COMMENT A good BEAT.....for a very well run company. I was in my local HD a few days ago. ALL the Christmas stuff is fully out and on display. I can see that they really are going all in on the lawn decorations as well as the indoor items like trees. The items they had on display looked great and were very attractive in the store. My local store is very well staffed.....no problem at all finding someone to help you if you need help with something. We bought a new refrigerator a month or so ago......we got it at HD........a nice Samsung that was priced with a $350 discount.
HD stock is up by $3.80.....just under 1%. In general the markets are seeing a nice open but on the MILD side.
