C.J. Lawrence Weekly – Rotation to Value Looks Unsustainable

We continue to favor stocks of growth companies that drive their own fate and grow market share regardless of economic conditions.

C.J. Lawrence Weekly – Corporate Insiders Increasingly Like the Odds of their Own Stocks

Correlations between insider stock purchases and the company’s stock price are not always tight.  Some insiders are better buyers than others.  But in aggregate insider purchases can paint an important picture of insider confidence in their own company and stock and whether they are willing to eat their own cooking.  “Insiders” are defined as directors […]

C.J. Lawrence Named Top Guns Manager by Informa Investment Solutions

C.J. Lawrence, an investment management boutique based in New York City, announced today, that its CJL Balanced Strategy has been recognized with multiple Top Gun ratings by Informa Investment Solutions’ PSN manager ranking database for 2Q-2019.

C.J. Lawrence Weekly – Sales Growers in Communications Services and Healthcare Sectors Have the Right Mix

Among the S&P 500 Index sectors, Communications Services, Health Care, and Consumer Discretionary have been delivering impressive sales growth year-to-date and are expected to outpace the S&P 500 again next year.

C.J. Lawrence Weekly – The Uncertainty Meter is Pegged

Friday’s stock market price action was emblematic of the current headline driven market.  Initially, investors took comfort from comments that Federal Reserve Chairman Powell made at a gathering of central Bankers in Jackson Hole, suggesting that the Fed was ready to take further action if needed.  But gains were erased when China announced that it […]

C.J. Lawrence Weekly – The U.S. Consumer Remains Global Growth Engine

Confidence among most U.S. households remains high despite the recent equity market volatility and negative trade headlines. Elevated home prices, low unemployment, and marginally higher wages at home may be offsetting global macro concerns.

C.J. Lawrence Weekly – This Week’s Suggested Summer Reading List

Terry Gardner is away this week on vacation, so the Weekly Market Comment will resume next week. But given recent market volatility and concerns surrounding Hong Kong and the trade stand-off between the U.S. and China, Terry himself thought it might be helpful to highlight three important WMCs written on those matters recently.

C.J. Lawrence Weekly – Equity Risks Rise but Relative Yield Comparison Still Favors Stocks

The Federal Reserve Board’s Open Market Committee (FOMC) reduced the Fed Funds target rate by 25 basis points last week.  The move marked the first time the Fed reduced the target rate in over a decade.  While the broader markets may have been looking for more than 25 basis points, investors eventually took the cut […]

C.J. Lawrence Weekly – Industrial Stocks Challenged by Slowing Global Manufacturing Activity

The market playbook was challenged last week.  Under the “old rules”, Friday’s release of better-than-expected second quarter US GDP should have nudged up U.S. treasury bond yields and caused gold prices to cool.  But the yield on the benchmark U.S 10-Year treasury bond was flat on Friday and was up only 3 basis points for […]

C.J. Lawrence Weekly – In Libra We Trust?

It’s tongue-in-cheek note title, not meant to convey real conviction, but to highlight the issue that in the new economy, even money is being disrupted.  David Marcus, former PayPal and Facebook Messenger executive and new head of Calibra, the digital currency consortium organized by Facebook, testified before Congress last week. Marcus really knew his stuff.  […]

C.J. Lawrence Weekly – U.S. Stock Indices Hit New Highs Amid Little Fanfare

Despite softer than expected economic data out of Asia last week, the U.S equity markets rose to new highs.  On Friday, the Dow Jones Industrial Average, NASDAQ Composite, and S&P 500 Index all closed at new records.  Falling bond yields have been the bullish propellant so far this year, but even last week’s slightly hotter […]

C.J. Lawrence Weekly – Earnings Take Center Stage

Friday’s positive payroll report gave the stock market a bout of indigestion, complicating the argument that the Federal Reserve would commence an interest rate easing cycle at their July meeting.  The market’s recent rise has been fueled by the prospect of lower interest rates, so the notion that rate cuts could be limited, upset the […]

C.J. Lawrence Weekly – The Wall of Worry is Painted Gold

The geopolitical backdrop is changing fast and the markets are taking note.  This past weekend the US and China agreed to resume trade talks and the U.S. agreed to delay the next round of trade tariffs.  In exchange, China has apparently agreed to purchase more U.S. agriculture products.  The stock market reaction to the détente […]

C.J. Lawrence Weekly – Interest Rate Cuts May Stave Off Reckoning for Highly Leveraged Companies

One metric we like to watch to help gauge the health of S&P 500 companies is the Interest Coverage Ratio.  The ratio measures how easily a company can pay its debt.  In aggregate, the Index’s ratio provides insight into the health of corporate balance sheets and supporting cash flow.  The ratio is calculated by dividing […]

C.J. Lawrence Weekly – S&P 500 Earnings Forecasts are Heading Lower. Can the Market Handle It?

The S&P 500 posted another positive performance last week and is now within 2% of the Index’s record high set back in April. Last week’s U.S. economic reports were generally supportive.  Retail sales for May came in close to expectations and prior months’ results were revised upwards.  U.S. Industrial Production and Capacity Utilization came in […]