Well, folks, obviously we had an incredible day on Wall Street. So today I’d just like to talk about what’s behind that, and how it’s affecting the investing landscape.
Right now, whether you ask President Trump, Speaker Pelosi, or anyone else, it’s very obvious what has to happen: The Treasury Department needs to put money in people’s pockets now, period. As I write this, the deal that’s taking shape is for $1,200 of stimulus per person, or $3,000 for the average family of four, immediately.
They want it wired to your bank account if you filed an electronic tax return. If you filed a paper tax return, they will mail you a check. But there’s a sense of urgency because some people need to pay bills at the end of the month, pay their rent and things like that. If a couple made over $200,000, you don’t get anything. But for all those working people who’ve been laid off, they need the money. So that’s good news.
Once that’s settled, we can start looking ahead to the question of Reopening America. I’m in Florida right now, and there’s talk that Florida will start screening New York flights. They might take your temperature; they might order that you be quarantined. New York City is a hotbed of the coronavirus right now. There are more people in cities, you can touch buttons in elevators and things like that.
So, when it comes to reopening, the truth of the matter is that the decision falls to a lot of state governors.
President Trump did do something interesting at his press conference on Monday. Besides updating us on FEMA efforts and promising new guidelines on Monday, Trump also said he called Fed Chair Jerome Powell and thanked him. Whatever disagreements they’ve had, these times call for national unity just to get things done.
And, believe it or not, I think our politicians actually are paying attention to what we think and say. So, let’s hope they do the right thing.
In terms of investing, I think the market’s been fine since Thursday. That’s when dividend stocks exploded, as I’d been eager to see, and some continued to rally into Friday. The stocks I recommend for subscribers were exhibiting tremendous relative strength then and Monday. (By the way, the Nasdaq was very, very firm yesterday.)
Now, this is quarter-end window-dressing. So, this is a time when my “Buy”-rated stocks normally do well. That’s simply because all the professional managers need to own stocks with good sales and earnings by the end of the quarter, to make their portfolios pretty.
Plus, remember, the exchange-traded funds (ETFs) need to rebalance every 90 days, usually by the last trading day in March, which is coming up fast.
So, the stocks exhibiting relative strength are also going to see their weightings increased in the ETFs that have become so popular. There can be a lot of really unfortunate things happening with ETF pricing and spreads, though, in a volatile market – which is why I prefer to stick with the high-quality stocks themselves.
In early April, I really need to see what the analysts say, because their estimates do jerk stocks around, as I noted yesterday. But, in the meantime, no investor deserves to be left in the dark.
I’ll keep publishing my research, based on a week’s worth of market data, just as I have for many years. From Saturday’s scan, I’ve got notable Upgrades and Downgrades available here, all the way up to my full Platinum Growth Club Model Portfolio.
A lot of Asian stocks are showing up on my radar, and Asia markets were up sharply today, with groups like Japanese stocks rallying for two days in a row. Keep in mind that Asia is getting over the hump of the coronavirus, and here in the United States, we can hope for a V-shaped recovery in the future.
Note: I can’t wait to start writing to you about earnings again – my favorite time of year – and not just the latest coronavirus headlines. That’s coming up soon. And that’s when we can be confident buyers and sellers, as the case may be.
My Portfolio Grader is available to you for keeping an eye on your stocks, then and now. I’m also holding an Open House for my Platinum Growth Club, because there’s no better time to have a proven strategy and smart diversification than in a bear market. Click here to learn about my Model Portfolio, VIP chats and other member benefits to ensure you’re ready when the “all-clear signal” sounds.