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Wall Street’s Best Investments 804

The market seesaw continues, but overall, we’re trading at about the same levels as this time last month.

The most recent retail sales report showed improvement, as did housing starts. And with the unemployment rate and job openings steady, the economy continues on a positive trend. First quarter earnings—so far—look good, and the S&P 500 forward P/E of 16.4 tells us that values are not overblown.

Wall Street’s Best Investments 804

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Market Views

Optimistic but Cautious

Last week was a constructive one for the market, with the major indexes tacking on gains and many potential leading stocks shaping up. Moreover, this builds on some other positive pieces of evidence, such as the positive divergences seen in the broad market as the indexes recently retested their February lows. Even so, we haven’t seen the intermediate-term trend turn up yet, so while we’re optimistic, we still think a relatively cautious stance makes sense.
Michael Cintolo, Cabot Top Ten Trader, www.cabotwealth.com, 978-745-5532, April 16, 2018

Also Cautious

We cannot rule out a further downdraft. When you have such large moves after a period of low volatility, you often see a major trend reversal. Now that we are approaching the mid-term election season, a big down move would benefit the party out of power, namely the Democrats. President Trump is not that popular with big money hedge funds and they may be ready to test the downside and see if they can profit from it. As a result, we remain very cautious.
Sean Christian, The Personal Capitalist, 9524 East 81st Street, Suite B #1715, Tulsa, OK 74133, April 15, 2018

Holding on—No Clear Direction

There isn’t much clear direction where ANYTHING is concerned. The combination of volatility, geopolitical friction and our own domestic political uncertainty require caution—and sitting on a fair bit of CASH—for the time being (Indeed, averaging out our recommended allocation models, we’re at roughly a 50% portfolio cash holding right now.)

Despite the never-waning confidence of perma-bulls and perma-bears alike, the truth right now as I see things is that there is no clear direction for stocks in the near term.
Chris Temple, The National Investor, www.nationalinvestor.com, 224-308-2587, April 16, 2018


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THE NEXT Wall Street’s Best Investments will be published May 16, 2018
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