We may have a leg higher…
There has been a lot of slogging since the correction in January as the markets have been range bound. We have not had anything truly meaningful to report, other than to say things are getting better.
This is the first good piece of news to report and it is that the Nasdaq, the technology market with leading stocks and the sector leading us forward has seemingly broken out to new highs. This is important, we should always watch what the leaders do, and the leaders have broken out to new highs.
Nasdaq breaks out above past peak:
Source: Bloomberg
I want to point out something extremely important – the media is constantly scaring investors on the tariff struggles and trade wars.
This is US Steel, a beneficiary of the tariffs and trade war. The company is only 7 billion in size and is not leading higher.
Source: Bloomberg
Conversely here is 800-billion-dollar value Amazon, continuously innovating, no need for trade advantages, and leading markets higher.
Source: Bloomberg
We do not have any meaningful exposure to stocks affected directly by trade wars and NAFTA. It is important to get beyond the headlines and remember things are pretty good.
We added Google and TenCent to our tech names over this recent pullback and have increased exposure to upside in technology stocks.
Fingers crossed for a great summer market.
Regards,
Chris, Rick, Steve and Sophia
The Stuchberry Group
