The Long Term Investor

TOMORROW.....more of the same. A lingering soft open. And....a repeat of the past couple of weeks. I will take it....good enough for me. I MUCH prefer the current market compared to the JUMPY, ERRATIC, IRRATIONAL markets we had for months prior. At least the current market makes TOTAL sense. A typical summer market......yes....the OLD normal.

 

The PETER PRINCIPLE on steroids. We were talking about the IRS today and the fact that we do not EVER expect to get the last stimulus payment. (we will take an income tax credit next year) The IRS has now reached MAXIMUM CHAOS. Fortunately/unfortunately I dont care how many people they hire, how much money you throw at them, or anything else......they are going to be one big screwed up mess.......from here on. The CURRENT MESS has been in the making for decades.

Millions of tax refunds may be delayed as IRS backlog swells, report finds

https://finance.yahoo.com/news/millions-of-tax-refunds-delayed-180032717.html

(BOLD is my opinion OR what I consider important content)
"The Internal Revenue Service's backlog of tax returns more than tripled over last year, according to a new report, as it stretched to enact last-minute tax legislation and provide much-needed stimulus payments earlier this year.

The delay could affect many Americans still waiting on tax refunds.

“The 2021 filing season was the quintessential definition of a perfect storm,” National Taxpayer Advocate Erin Collins wrote in her mid-year report to Congress. “This filing season has been challenging for tens of millions of taxpayers and anything but normal for the IRS and its employees.”

At the end of the 2021 tax filing season, the agency held 35.3 million individual and business tax returns for manual processing, a 230% increase from last year when 10.7 million returns were backlogged. The volume is also up 377% from the 2019 filing season.

More than 14 million individual tax returns require further review, including those claiming stimulus payments, the Earned Income Tax Credit (EITC), or the Child Tax Credit (CTC) — two credits that predominantly help lower income Americans.

On some returns, there was an inconsistency between the stimulus payment the taxpayer received and the amount claimed on their return. On others, the taxpayer used the new 2019 “look back” rule to calculate their EITC or CTC, and the IRS must verify that calculation.

“For taxpayers who can afford to wait, the best advice is to be patient and give the IRS time to work through its processing backlog,” Collins wrote. “But particularly for low-income taxpayers and small businesses operating on the margin, refund delays can impose significant financial hardships.”

When asked about the findings of the report the agency said that the numbers in the report "do not reflect the current situation at the IRS."

"The 35 million returns noted by the NTA include 15.2 million individual and business tax returns that are already in some stage of the normal processing stream and not part of the backlog," the agency said in a statement to Yahoo Money.

'So few callers can get through to a telephone assistor'
The agency also received a record high volume of calls in 2021 — three times more than than the 2020 season — and responded to a record-low fraction. Of the 167 million calls the IRS received by the end of the 2021 filing season, only 9% reached a telephone assistor.

“When so few callers can get through to a telephone assistor, problems remain unsolved and taxpayer frustration mounts,” Collins wrote.

A confluence of factors are to blame, Collins wrote. Pandemic legislation brought one-time tax changes in the middle of tax season, while IRS employees worked in suboptimal conditions from home. Additionally, the agency oversaw the distribution of 163 million stimulus payments starting in March.

The agency also faces long-term staffing challenges. Between 2010 and 2018, the IRS lost over 21,000 employees and its budget was slashed by 20% when taking inflation into account. While the agency staff and budget increased slightly in 2020, they are still significantly below 2010 levels.

"Our ability to answer phone calls reflects the amount of staffing available," the IRS said. "Pending budget proposals would help the agency’s ability to assist more taxpayers, including on the phones."

President Joe Biden is calling for $1.2 billion in additional funding for the Internal Revenue Service in his 2022 budget request — a 10% increase over 2021 — as well as further funding as part of his infrastructure plan.

“The pandemic exposed weaknesses and vulnerabilities that must be strengthened,” Collins wrote. “It led to a renewed awareness of the impact of cuts to the IRS’s budget over the past decade and the IRS’s need for additional funding.”"

MY COMMENT

A total waste of money.....this agency. The PINNACLE of government INCOMPETENCE. Yeah....I know....I will probably be audited now.

 

WELL......I hear there ARE some job openings at the IRS. This story and the "allegations" in the story are INSANE. THIS.....is a consultant to CEO's of major companies.

Teneo CEO Declan Kelly Resigns After Apologizing for Behavior at Charity Event
Adviser to top CEOs says he stepped down to protect employees and clients; hands over title to co-founder Paul Keary

https://www.wsj.com/articles/teneo-...igned-as-chairman-ceo-11624972212?mod=itp_wsj

I actually have NO opinion about this.....other than these are simply "allegations".

"Declan Kelly has resigned as chairman and chief executive of global consulting firm Teneo Holdings LLC after reports of drunken misbehavior at a charity event last month.

Mr. Kelly, a go-to adviser for CEOs of major companies such as General Electric Co. and Coca-Cola Co. , is handing over the CEO role to Teneo co-founder and Chief Operating Officer Paul Keary, Teneo said. It didn’t name a new chairman.

Mr. Kelly, 52 years old, apologized last week and said he would reduce his responsibilities after getting drunk and behaving inappropriately with people at an event hosted by the charity Global Citizen in early May. Mr. Kelly was (ALLEGEDLY) drunk and touched women without their consent at the event, the Financial Times and others reported.

Global Citizen, a charity that hosts fundraising concerts to address extreme poverty, removed Mr. Kelly from its board on May 3 and last week General Motors Co. dropped Teneo as an adviser after the details emerged.

“In order to protect the employees of Teneo and its clients, and with my family’s strong support, I have decided to leave the company and resign as Chairman and CEO,” Mr. Kelly said in a statement"

MY COMMENT

You could not make this stuff up if you tried.

 

TYPICAL open today.....a bit stronger than yesterday....but the same basic market. A "normal" dull summer market day. So nice.

 

For those that use a Financial Advisor.....this is a nice little article. For those that do NOT use an advisor......perhaps playing DEVILS ADVOCATE.....with yourself......playing the role of advisor AND investor.....like the old cartoons where a person has a devil on one shoulder and an angel on the other shoulder whispering in their ear......would be a SMART exercise before jumping into the latest FAD.

What Investors Need Most When Greed Blinds
Get yourself an adviser who challenges, not rubberstamps, your investing ideas.

https://www.fisherinvestments.com/en-us/marketminder/what-investors-need-most-when-greed-blinds

(BOLD is my opinion OR what I consider important content)

"With global equities up 92.6% since March 2020, many investors are seeing green everywhere they look—and not just among blue-chip stocks. A parade of faddish investments have cycled through headlines, stoking a whole lot of FOMO—fear of missing out—in the process. Meme stocks. Cryptocurrencies. Non-fungible tokens (NFTs). As a result, many seem to be wondering if they should dive in to the Next Hot Area, snapping up a huge stake in Reddit’s next favorite meme stock or taking a flyer on a big bounce back in dogecoin (et al). Those impulses signal greed may be afoot—an emotion critical to resist late in a bull market. In my view, this is where an adviser can add tremendous value for clients—so long as they don’t simply say what clients want to hear. An adviser should show their client the troubles with giving into greed, not indulge every whim. In other words, when greed lurks, you need a true adviser—not a Yes Man.

Greed is usually easier to identify in others than in ourselves, so here is a hypothetical conversation between a client, Jim, and his adviser:

Jim: My neighbor told me about a new crypto coin developed by her nephew’s college roommate’s company. We have some spare cash. What do you think about taking a flyer on this coin? Can’t hurt, right?

Adviser: Jim, you said on our last call that cash was for your granddaughter. Remember you wanted to help her with some college expenses? She graduates next year, so we agreed holding that cash right now makes sense.

Jim: I know, but this seems like a chance to get in on the ground floor, and my neighbor said I could quadruple my investment in months—well before my granddaughter graduates. We already missed out on bitcoin. Plus, you’re always telling me about the importance of diversification. Wouldn’t this qualify?

At this point, the adviser is at a crossroads. Do they simply give in to Jim’s request? Or do they push back and have a tough conversation?

Now, the correct answer may seem obvious: The adviser should identify Jim’s greedy behavior and address it. Jim is paying his financial adviser to, well, advise him, not to simply agree with him. In my view, that means going beyond just listening and answering questions. It also means engaging and, occasionally, challenging ideas—the latter of which may be uncomfortable for both parties. But an adviser’s role is more than being an expert on financial issues. It also involves being a clear-eyed counselor who recognizes the perils of acting emotionally in investing—and how doing so could set back their client’s progress toward their long-term investment goals. A good financial adviser isn’t afraid to be a sobering voice when the client wants to party hard, just as they should deliver steady, calm counsel when volatility stokes fear.

However, just because an adviser should do that doesn’t mean they will. According to an annual survey of over 500 financial advisers conducted in March this year, 14% of respondents currently use or recommend cryptocurrencies with their clients—up from less than 1% in 2020. [ii] Moreover, 26% expect to increase their use or recommendation of cryptocurrencies over the next 12 months, up from 0% in last year’s survey.[iii]

What changed? Nothing with cryptocurrencies themselves—they have been super volatile throughout their short history. But broader interest in cryptos has swelled alongside their prices—and unsurprisingly, some investors are comfortable with that kind of positivevolatility. Bitcoin, for example, skyrocketed 103% in Q1 this year and 815%(!)between March 2020—the last time the survey was taken—and March 2021.[iv] The corresponding jump in advisers apparently ok recommending cryptos is also no shock. In my view, it suggests at least some are taking the path of least resistance and acquiescing to their clients—even though the fundamental reasons to own crypto are still dubious.

But while it is easy to hold something going to the moon, how comfortable are clients—and advisers—when it crashes to earth? Negative volatility has a way of changing minds and moods quickly. Has bitcoin’s -39% plunge between March and today altered some clients and advisers’ theses to own?[v] If it has, that implies a poor investment process to me. Now don’t get it twisted: I am not inherently against cryptocurrencies. But I am against chasing heat—especially when a financial adviser, tacitly or explicitly, encourages it.

Going back to our aforementioned hypothetical conversation, it probably wouldn’t be helpful if the financial adviser simply told Jim he was being greedy—name-calling will get you nowhere. Instead, as we aim to do here on MarketMinder, the financial adviser should show, not tell, Jim the perils of giving into greed. For example, they could discuss the motivations behind the changes. If Jim responds with a version of FOMO—e.g., citing recent hot returns or comparing performance to others—the adviser should then ask whether making those moves are consistent with his specific investment goals. Chances are they aren’t. Based on Fisher Investments’ vast experience, successful investing depends more on staying disciplined with a long-term plan than finding highflyers or the Next Big Investing Thing.

The adviser should also discuss the new risks Jim may unknowingly be taking by deviating from his plan. This is an opportunity to educate using recent history and tangible terms. For example, bitcoin’s volatility isn’t new—it fell by -74% in 2018.[vi] The adviser could ask Jim to imagine how he would feel if his portfolio tumbled from $1,000,000 to $260,000—and how that would impact his ability to fund retirement or other goals. Moreover, if Jim says his goals changed, a much more in-depth discussion is necessary, in my view. New goals may require significant portfolio changes that can’t be addressed by simply buying whatever is hot at the moment.

Now, if a client like our hypothetical Jim still desires to make a change, that is his prerogative. It is his hypothetical money. But ideally, he should make that decision only after a fully informed discussion with his financial adviser. That conversation should challenge Jim’s ideas—not parrot them. A financial adviser who simply kowtows to their client’s whims without educating and actually counselling them is a liability, not an asset, in my view.

MY COMMENT

For those that use a Financial Advisor.....I agree completely. This is what you are paying for.....a rational, experienced voice.

FOR those that are handling their own investments.....like many of us on here do.....you are YOUR OWN ADVISOR......you need to be asking yourself these questions before you run off into some new investing FAD. YOU need to play the role of DEVILS ADVOCATE with yourself.

Personally, I would rather miss out on some gains in the latest investment FAD compared to being an early adapter. Unfortunately....GREED.....is a huge driver of investor behavior and is an expert in breaking down rational barriers to doing something DUMB.

 

HERE is the irrelevant economic news of the day that everyone will simply ignore as usual.

Jobless claims: Another 364,000 Americans filed new unemployment claims last week

https://finance.yahoo.com/news/weekly-jobless-claims-week-ended-june-26-2021-183250322.html

(BOLD is my opinion OR what I consider important content)
"New weekly jobless claims fell back below the 400,000 level for the first time in three weeks, resuming improvements after a brief bump higher in initial filings.

The Department of Labor released its weekly report on new jobless claims Thursday at 8:30 a.m. ET. Here were the main metrics from the report, compared to consensus data compiled by Bloomberg:

• Initial jobless claims, week ended June 26: 364,000 vs. 388,000 expected and an upwardly revised 415,000 during prior week
  
• Continuing claims, week ended June 19: 3.469 million vs. 3.340 million expected and an upwardly revised 3.413 million during prior week

At 364,000, new filings reached the lowest level since March 2020. Prior to Thursday's report, initial unemployment claims had stagnated in recent weeks, holding stubbornly above the 400,000 level even as employers across the economy struggle to fill open positions. However, the overall trend has improved markedly over a longer time horizon, with new claims coming in at about half their total from the beginning of 2021. New claims were coming in at just over 200,000 per week on average throughout 2019.

"After two upside surprises, claims have dropped to a new cycle low, but only just; the previous low was 374K, three weeks ago," Ian Shepherdson, chief economist for Pantheon Macroeconomics, wrote in a note. "It’s possible, then, that the recent data signal a slowing in the trend rate of decline in claims, but these numbers are noisy and we aren’t going to rush to judgment on the back of such a short run of data."

"Moreover, the added complication over the next few weeks is that claims are often distorted in late June and early July by the annual automaker retooling shutdowns, which vary in their exact timing and extent from year-to-year," he added.

Many economists are looking for further improvement in the coming months. This would coincide with school reopenings to help alleviate the burden of finding childcare, an increase in consumer mobility and demand over the summer, and a phase-out of federal enhanced unemployment benefits.

As of June 26, about 20 states had partially or fully cut off the augmented jobless benefits put in place at the start of the pandemic. Some state officials have argued that the phase-out, which comes months before the official national expiration date in early September, would help incentive workers to rejoin the workforce especially as employers across industries cite labor shortages.

Some economists, however, have cast doubt on any causal link between ongoing federal unemployment benefits and widespread continued joblessness.

"We find that enhanced jobless benefits are an incentive for only a small share of unemployed workers to not find a job," Oren Klachkin, lead U.S. economist for Oxford Economics, wrote in a note Wednesday. "The data indicates a tenuous relationship between changes in the number of people receiving supplemental jobless benefits and the number of people sending out resumes or filling out job applications."

"In all, the findings indicate that the value of a permanent job and the elimination of risks tied to staying unemployed (such as the chance of a long jobless spell) outweigh the value of enhanced jobless benefits," Klachkin added.

Still, the total number of claimants reported across all programs has been persistently elevated, and mostly comprised those on the federal Pandemic Unemployment Assistance (PUA) and Pandemic Emergency Unemployment Compensation (PEUC) programs. The sum total of Americans claiming benefits of some form was 14.7 million as of the week ended June 12, which represented a slight uptick from the prior week. Of these, 11.1 million individuals were claimants of either PUA or PEUC.

State-by-state unemployment
The decline in new jobless claims was broad-based, with most U.S. states contributing to the decrease. Pennsylvania saw by far the biggest drop in new claims at 18,000 on an unadjusted basis. Kentucky also saw a drop of 8,000 new claims, while filings in California fell by nearly 7,000.

Other states still grappled with elevated insured unemployment rates, or proportion of those claiming unemployment benefits to the total state population. Rhode Island's insured unemployment rate was at 5.1% for the week ended June 12, or more than double the U.S. average of 2.5%.

Nevada, a tourist-heavy state that has for months had one of the highest insured unemployment rates in the nation, saw the second-highest rate at 4.4% for the week. Puerto Rico's insured unemployment rate ticked up to 3.9%, and Connecticut rounded out the top four highest rates at 3.8%. "

MY COMMENT

This is TOTALLY a function of the re-opening.....like EVERYTHING. It is also.....OBVIOUSLY......a function of the fact that 20 states have NOW eliminated the extra....stay at home.....money. This is the FIRST TIME IN HISTORY....that we have paid....former....workers to stay at home and not work. If you want to DISTORT the economy and provide an incentive to people to NOT work....you could not come up with a better system.

 

A bit into the open the tech stocks are lingering in the red. TYPICAL of the recent market. As I said.....TODAY is right in line with every day of the past few weeks. DOW up and the other averages bouncing back and forth between red and green. The middle of the day to the end of the day will determine where we end up. ANOTHER....good day to just go out and NOT spend a lot of time watching the markets.

BUT.....over the long term.....what REALLY counts....the general market direction is VERY POSITIVE.

 

At least.....for me....it is nice to see NVDA in the green so far today. It ended up a bit in the red yesterday....less than $1. Time to get some positive momentum going again.....and.....POWER into the stock split that will happen in.....11....market days.

Nvidia price target raised to new Street high of $1,000 at BMO Capital Markets

https://forextv.com/market-news/nvi...w-street-high-of-1000-at-bmo-capital-markets/

"BMO Capital Markets analyst Ambrish Srivastava boosted his price target on shares of Nvidia Corp. to $1,000 from $750, with the new target being the highest among analysts tracked by FactSet who cover Nvidia’s stock. Shares are up 1.4% in premarket trading Thursday. Srivastava is upbeat about the growing relevance of software to the Nvidia business model. “As we look further out to the company’s data center business, we now see the business growing to a $32 billion business a few years out versus our prior expectation of $25 billion,” he wrote in a note to clients. “We also think that as software starts to become a bigger portion of the business, [gross margins] will continue to trend up, and we now see GMs of 75% for the business versus our prior modeled 72%.” Nvidia shares closed at $800.10 in Wednesday’s session. The shares are up 53% so far this year as the S&P 500 has increased 14%."

 

This is an INDICATION of an economy that is in the process of RAMPING UP. As we move forward.....the market and economic leaders will.....as usual....be the BIG CAP GROWTH giants that dominate the economy.

U.S. Factory Expansion Is Solid; Price Gauge Highest Since 1979

https://finance.yahoo.com/news/u-manufacturers-expand-solid-pace-140940907.html

(BOLD is my opinion OR what I consider important content)

"(Bloomberg) -- U.S. manufacturing continued to expand at a solid, yet slightly slower pace in June while a measure of prices paid for materials jumped to an almost 42-year high.

A gauge of factory activity eased to 60.6 from 61.2 in May, according to Institute for Supply Management data released Thursday. Readings above 50 indicate expansion and the June figure compared with the 60.9 median projection in a Bloomberg survey of economists.

While a measure of new orders receded, production picked up and allowed manufacturers to make just modest headway on well-elevated order backlogs. At the same time, a gauge of factory employment shrank, adding to evidence that producers continue to have trouble finding skilled workers at a time of robust demand.

“Continued high backlog levels, too low customers’ inventories and record raw-materials lead times are being reported,” Timothy Fiore, chair of the ISM’s manufacturing business survey committee, said in a statement. “Labor challenges across the entire value chain continue to be the major obstacles to increasing growth.”

The ISM’s index of prices paid for raw materials increased to 92.1, a level not seen since the 1979 Iranian revolution and oil crisis. Logistics challenges, elevated commodities prices and shortages of various supplies continue to pressure manufacturers.

Shortages of semiconductors have been particularly disruptive to the auto industry, where production earlier this year was restrained due to the lack of supply.

Seventeen of 18 manufacturing industries reported growth in June, led by furniture, machinery, electrical equipment and appliances, and computers.

Despite last month’s declines in the ISM measures of order backlogs and total bookings, the figures remained elevated. Supplier delivery times also eased while remaining extended.

Meanwhile, a gauge of export orders strengthened, indicating economies overseas are making more headway in their emergence from a pandemic-related slump in activity.

The ISM’s employment index slipped 1 point in June to 49.9, just below the level that signals stagnation even as orders and production remain robust.

The government’s monthly jobs report on Friday is projected to show manufacturing payrolls increased by 25,000 in June, which would be the most in three months. Overall employment is forecast to rise more than 700,000."

MY COMMENT

This data is exactly what you would expect with the USA and the world trying to start up the economy. There are going to be disruptions and headaches along the way...but....in general IT IS HAPPENING. I believe we are looking at about 12 months to get things....relatively....back to normal. BUT......considering where we were just a few months ago...we are doing fine.

 

I could not resist...so I looked at my account a bit early today. I was....as usual lately....surprised to see it in the green...moderate green. With the weakness in the big cap tech stocks I expected to be a bit into the red at this time in the day. Of my ten positions.....the red were.....AAPL, AMZN, COST, and MSFT.

I dont know why...... but it seems like poor COST is the Rodney Dangerfield of stocks lately.....they dont get no respect. WELL....actually I do know why......the media and others have.....FOOLISHLY....convinced themselves that the BOOMING results that the company has been seeing in their earnings lately is due to the pandemic and now that the virus is fading those GIANT earnings will back off. My view.....I dont think so. I dont believe that COSTCO shoppers and members fluctuate that much due to the economy....they are loyal and regular shoppers......EVERY MONTH.

 

Correct as usual Zukodany. It is amazing how consistent the markets have been lately in the pattern they follow each day. The daily results and action has been VERY uniform for the past 3-4 weeks.

That is also a good point Zukodany about CCG. The pandemic and I would guess the aging of the Millennial generation has kicked off a ROARING BULL MARKET in collectables. People now seem to be very aware that it is ALL about condition. In ANY collecting.....acquiring the very best you can afford is the way to.....perhaps.....making money.

AND.....Emmett......yes....there is NO tolerance for the "fun" that people used to have at the office and office events. Of course....one persons fun is another persons hell. BUT...back than...at least you got to see the real side of the people you worked with come out once in a while......not a lot of resignations....but a lot of people killed their chances for a promotion.

 

OK....another day....the same basic day as the past 3-4 weeks. WIMPEY open.......and a mildly strong close. I have been green eight of the past nine market days. A moderate green day today......and.....a beat of the SP500 by 0.08%. I had ( ot 10 positions in the green. My single LOSER of the day...by a small amount.....the Rodney Dangerfiled stock....COSTCO. It was down by $1.14 or 0.29%. My HERO stocks for today were NIKE up by $3.51 or a nice 2.27%........and.....NVIDIA up by $8.36 or 1.05%.

Oh yes.....another personal all time high. As far as I am concerned.....we can follow this little daily pattern all summer. The SUMMER......stealth......RALLY continues.

 

Are you bored with seeing your portfolio hitting new high after new high lately? Well.....the markets never stay the same. This has been a long stretch....about a month....of a similar market day after day. Take the reverse of this....a relentless day after day....losing market......and multiply that by a year or two...and you have a typical BEAR MARKET. Of course.....there are rally time periods in any bear market...it is not all straight down. Those rallies......suck people back in and then DASH THEIR HOPES.

I try to treat the BULL and BEAR markets the same.......although I DO CELEBRATE the BULL markets as they happen. I try to IGNORE the bear markets.

Being FULLY INVESTED....all the times....makes it easy. BULL or BEAR.....I am fully invested and in the markets. I dont have to worry about trying to time the markets.....especially since it is impossible and frustrating.

 

A GLORIOUS start to the second half of the year today.

Stock market news live updates: S&P 500 sets fresh record high after jobless claims dip more than expected

https://finance.yahoo.com/news/stock-market-news-live-updates-july-1-2021-221546079.html

(BOLD is my opinion OR what I consider important content)

"Stocks gained on Thursday to reach new record levels, adding to advances after the major indexes closed out a strong second quarter and first half of the year.

The S&P 500 set a fresh record intraday and closing high, and each of the Dow and Nasdaq also edged up. The blue-chip index gained 14.4% for the year to date through Wednesday's close, and ended June with a more than 2% gain for a fifth straight monthly rise. A batch of strong economic data helped propel equities higher, with private payrolls growing by a better-than-expected 692,000 in June and new jobless claims falling to a new pandemic-era low, with both prints pointing to a potentially strong print in the Labor Department's "official" June jobs report on Friday.

For the April through June quarter, the information technology, real estate and communication services sectors outperformed amid a broad-based rotation back into technology and growth stocks. The rotation coincided with lessened concerns over inflationary pressures, as investors considered signs that price increases would be only transitory in the early stages of the recovery. The cyclical energy and financial sectors, however, are still the best performers for the year-to-date.

"I still think energy and financials are a decent place to be," Shawn Snyder, Citi U.S. Wealth Management head of investment strategy, told Yahoo Finance. "And I think that even as we've seen the 10-year Treasury yield decline over the past three months as inflation expectations came down a bit, I still think odds are yields will move higher over time ... and those sectors that are sensitive to interest rates, which are energy and financials, I still think make sense."

"What we're looking at is moving a little bit away from the U.S. and more towards areas that haven't recovered fully," he added, noting as an example that U.K. equities trade at a significant discount to many of those in the U.S. "In the U.S., I would say airlines, leisure and hospitality, have not fully recovered yet compared to where they were prior to this pandemic. So I think there's still room to run there."

Other strategists also suggested that the tug-of-war between cyclical and growth stocks will likely continue into the second half of the year.

"One day, it's growth is in favor. The next day, value's in favor. A lot of that is being driven by interest rates and thoughts on the Fed," Chris Hodge, chief investment officer of Cornerstone Wealth, told Yahoo Finance. "There's certainly no question as we hit the summer slump, the dog days, so to say, that markets have not yet really decided on what the next move is going to be."

"We're passing through the easiest compares in modern history, comparing against the COVID shutdowns. So unfortunately, we think a lot of the easy money has been made in 2021," he added. "Going forward, the path is going to be a little more difficult, as we think we're in for some growth deceleration and, hopefully, some leveling off on the inflation front as well."

MY COMMENT

As we move forward and begin to compare earnings to quarters that are beyond the pandemic.....the comparisons will get harder. My opinion is that it will be the BIG CAP GROWTH company leaders that will have the STAYING POWER to match up nicely to prior earnings. The companies that will STRUGGLE with earnings comparisons will be the flash in the pan companies and those that do not have dominant and iconic business models and products. In a more normal environment it will also be very much about......GREAT MANAGEMENT and execution.

 

WHOOPS......I now see that AMAZON was ALSO in the red today in my portfolio....by a very small amount....a bit over $7 per share.