CWS Market Review – January 12, 2018

Jan 12 12:01 2018 Print This Article

“Stock market: a place where events with a 90% of the time.” – Urban Carmel

The year 2018 is picking up where 2017 left off. The market has risen for seven out of eight days this year. In fact, this is one of the best starts to a year in market history. The S&P 500 is already up 3.5% this year, and we’re not even at the Super Bowl.

The good news is that the economy continues to do well. We’re probably growing at the strongest rate in several years. Very soon, we’re going to get a lot more evidence for stronger growth as the fourth-quarter earnings season beings. This looks to be a good one for corporate America, and expectations are high. Naturally, we’ll also get a look at how well our Buy List stocks did.

In this issue of CWS Market Review, I want to focus on the upcoming earnings season. I also want to look at the impact of tax reform on the stock market and discuss the recent uptick in long-term yields. Later on, I’ll have some updates on our Buy List stocks (good news from Danaher!). But first, let’s see why corporate tax reform was so important for us.

Read More

About Article Author

Crossing Wall Street

As an experienced fund manager, Eddy Elfenbein created Crossing Wallstreet to help investors avoid the mistakes that separate successful investors made. The key to doing well on Wall Street is actually very simple: Buy and hold shares of outstanding companies. But too many investors never learn this valuable lesson. He gives investors his free and unbiased view of the market. Eddy analyze's dozens of companies every week and is always looking over income statements and balance sheets. He's spent several years collecting a list of the best companies to own. His buy list is on Crossing Wallstreet. All of the information on this site is free and unbiased.

Related Items

Clips From Today’s Halftime Report

Twitter upgraded to buy at Aegis Capital from CNBC. ... ...

Big Reversal Today

The stock market had a big reversal today. I can’t remember the last one this big (and I’m too lazy to look it up.) At one point this morning, the S&P 500 was up 0.76% to a new all-time high. We couldn’t hold on, and the index closed down 0.35%. Crypto-Land had a very tough day. Bitcoin fel ...

What we learned about fixed income in 2017

The turning of the calendar isn’t just an opportunity to celebrate; it’s also a time for reflection, for learning from experience, and for doing some serious looking forward about what to potentially expect, and resolve to do, in the year to come. To that end, let’s reflect on the forces that ...

As Good As it Gets?

We’ve heard about the death of the traditional 60/40 portfolio for a few years now. With the benefit of hindsight, and some valuation expansion, it appears it was buried alive. This boring, two holding portfolio (Barclay’s Aggregate Bond Index, S&P 500, annual rebalance) has had positive returns ...

Tech Talk for Wednesday January 17th 2018

  Observations Huge key reversal yesterday by U.S. equity market! The Dow Jones Industrial Average initially surged to over 26,000, but weakened through most of the day to close at a small loss. The VIX Index spiked. Technical action by S&P 500 stocks was relatively quiet given their volatility. ...

Tech Talk for Wednesday January 17th 2018

  Observations Huge key reversal yesterday by U.S. equity market! The Dow Jones Industrial Average initially surged to over 26,000, but weakened through most of the day to close at a small loss. The VIX Index spiked. Technical action by S&P 500 stocks was relatively quiet given their volatility. ...

Global steel industry’s ‘zombie’ rescue addiction

The strong upturn in international steel prices since late 2016 has somewhat clouded over the fundamental problems that continue to hamper the industry, including overcapacity. Recent Chinese capacity closures have been well chronicled. However, few have noted the reality that global steel producti ...

Never a Free Lunch in FX markets these days

Never a Free Lunch in FX market these days Forex Overview Trading currency markets can be cruel and unusual punishment and unforgiving at times. Which was typified by EURUSD moves overnight as two critical headlines sunk the EUR, causing some well thought out longs to get stopped out only to have th ...

KER Politics – Tue 16 Jan, 2018

By Big Al Anti Trumpers need to remember this speech! I am a bit concerned about the shift immediately after Trump’s introduction back to Jackson an then again back to Trump. My only consolation is that I got this from The Drudge Report and I don’t believe that it would put a “doctored” vid ...

Oil, Gas Producers Among Hardest Hit By US Tax Reforms

U.S. oil and gas producers are among companies hit hardest by new restrictions on tax relief for interest payments, an analysis of the impact of the reforms has shown. The sweeping overhaul of the U.S. tax system signed into law by President Donald Trump just before Christmas cut the main rate for c ...