The markets have been bouncing around lately, but as our contributors note in our Market Views section, “volatility can be your friend.” The dips can provide some great opportunities to pick up temporarily undervalued companies. And with the economy continuing to perform well, all signals for a longer bull run say go.
Wall Street’s Best Dividend Stocks 306
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Market Views
Volatility Can Be Your Friend
A strong earnings season alongside recent inflation data has supported stock prices. Yet some analysts appear worried about rising inflation and interest rates. The change of tone has increased volatility, which is actually a good thing for investors who have a solid understanding of when to buy value.
The declines in the Dow and S&P 500 come as investors assess winners and losers in the Trump administration’s plan to impose tariffs on steel and aluminum imports. The energy sector also weakened as crude prices slumped. Energy companies are massive users of steel for pipelines and drilling rigs; if the price of steel rises, earnings will be impacted.
Jon Markman, Tactical Options, www.markmancapital.net, March 12, 2018
The Bull Continues
Last week, the market (the Dow) consolidated and then moved up strongly on Friday, to move above the critical 25,250 support—a very bullish sign. The market looks like it will rally again this week, along with oil and oil stocks.
Joseph Cotton, Cotton’s Technically Speaking, www.cottonstocks.net, 727-289-4436, March 12, 2018
Buy on Dips
The major indexes have strengthened enough to turn their intermediate-term trends back up, which, combined with the very bullish action from leading growth stocks, is a good reason to put some more cash to work. We’re looking at this signal less as a blastoff and more as a resumption of the major uptrend, which means you still want to look for halfway decent entry points and preferably buy on dips.
Michael Cintolo, Cabot Top Ten Trader, www.cabotwealth.com, 978745-5532, March 12, 2018
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The Next Wall Street’s Best Dividend Stocks Will Be Published April 11, 2018
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