This has to be the most manic of Mondays we’ve ever experience together as we begin this journey as strangers who share common financial goals and views. Stocks on track for worst start to April since the Great Depression!!! Not exactly a good historical trend you would like the market or your portfolio to follow EVER!!! As I write this the S&P is down nearly 3% it would only need to close down 2.55% to break the 1928 record.
The Nasdaq 100 Index lost more than 3.4 percent as investors continued to offload some of the bull market’s biggest gainers. Amazon, up 50 percent in the past year, sank after Donald Trump renewed his attack on the online retailer.Netflix slid as much as 6 percent, while chipmakers in the S&P 500 plunged more than 5 percent thanks to Intel’s worst day in two years. Bonds erased declines and gold spiked higher as the equity selling picked up steam.
Small caps fared only modestly better, with the Russell 2000 off 1.9%. The index has wiped away all gains from its low made a month ago. It is more than 6% below its prior high. All of these drag downs have been lead by tech companies.
The only good thing that I can say right now is that earning season is upon us and it might be the saving grace that heeds this pullback, correction, abnormality; not exactly sure how to label this.
I know this hurts, I know you thinking to yourself maybe I’ve been greedy, maybe I should get out. But I urge caution and patience; for these are the times that fortunes are made and bargains are found. Like seriously when was the last time Netflix was down 6% in recent memory(is that a buying opportunity I hear), or Amazon appeared weak where you could probably get in on some shares at an attractive price. Just take a deep breathe, get out your excel spreadsheet, do some quick analysis and see where you can be a BULLLLLLLLLLLL!!!!
If you have any questions or have any suggestions about bargain priced securities you want me to give a second pair of eyes to let me know. Now more than ever we should be a sounding board to one another so we can make smart efficient investments. I’ll be talking to you all soon.
Jamaal W Vetose
Director Of Research & Analysis