Tariff threats for China and Mexico continued to roil the markets this month. But yesterday, we saw a 500+ gain, on the heels of Fed Chairman Powell hinting at a rate reduction. Meanwhile, the economy is holding up well, with auto sales and construction spending rising and employment still strong.
Sentiment has turned a bit more cautious, as you will see in our Market Views, but most advisers think the market is oversold right now. And that’s good news for our pickings!
Wall Street’s Best Dividend Stocks 321
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Market Views
Be Ready for Profit-Taking
I see yields and stocks falling considerably more than this in the months ahead. Likewise, I think gold’s countdown is nearing its end, prior to re-launching in more dramatic fashion its interrupted secular bull market.
But these moves—or at least some of them—may be about to reverse for a spell. And especially if that is brought about by Fed Chairman Powell softening his tone notably tomorrow, it may well require some shifts to our positions of late: both locking in some nice recent profits, and adding some other holdings as some areas rally.
Chris Temple, The National Investor, www.nationalinvestor.com, 224-308-2587, June 3, 2019
Pare Down During Rallies
Stocks are well overdue for a rebound, but corrosive developments in Washington, Beijing and the U.K. are accumulating in a way that looks harmful for risk markets. Probably wise to use rallies to lighten up.
Jon Markman, Strategic Advantage, subscriptions@markmancapital.net, June 3, 2019
Oversold, Short-Term
The S&P 500 confirms break below 2800, next support 2700; the Nasdaq 100 forms top beneath 7500, with support at 7000. The Short Term Composite reaches an extreme reading of 1.7. Transports form short term top. Our outlook is still cautious but we note the Short Term Composite becoming very oversold.
John Gray, Investors Intelligence, www.investorsintelligence.com, 914-632-0422, June 3, 2019
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The next Wall Street’s Best Dividend Stocks issue will be published on July 3, 2019
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