C.J. Lawrence Weekly – The U.S. Consumer Remains Healthy, While the Gap Between Sector Winners and Losers is Widening

The U.S. consumer is healthy and living within his/her means and that should be positive for consumer related stocks. But wide gaps are forming between those with cutting edge business models and those without. Passive investors in the sector may wind up with average returns, while active investor...
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C.J. Lawrence Weekly – Individual Investors Sell Stock and Bond Funds, While Institutional Investors Shun Stocks

Outflows from domestic equity mutual funds and exchange traded funds (ETFs) accelerated into year-end 2018.  According to data from the Investment Company Institute (ICI), domestic equity funds experienced outflows of $105.5 billion in 2018, $30 billion of which flowed out in the fourth quarter.  ...
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C.J. Lawrence Weekly – Economic Fears Feed Market Volatility but Slow Stable Growth and Tame Inflation Could Be Bullish for Stocks in 2019

Positioning portfolios for next year and beyond will be challenging for top down investors and managers. The 2019 and 2020 economic and corporate profit outlooks are murky and investors who remember the sting of the 2008 downtown may choose to remain in safe ports rather than face the risk that the...
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C.J. Lawrence Weekly Market Comment – Healthy Corporate Fundamentals and Stalled Bond Yields Keep the CJL Market Monitor in BUY Territory

The Market Monitor’s current reading is “BUY”, with a numerical score of +1, the lowest reading in BUY territory, on a scale of -6 to +6. As the Fed has lifted the Fed Funds target rate, the year-over-year interest rate rate-of-change models have weighed on the Monitor score. But despite ri...
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C.J. Lawrence Weekly – The Tug‐of‐War Between Lower Valuations and Faster Earnings Growth Still Skews Towards Growth

The race between earnings growth rates and the rate of decline in the market’s P/E multiple is on. Along the way, the 10-30 year treasury bond spread may provide insights into the appropriate market multiple to apply. The challenge for equity investors will be to find stocks with earnings growth r...
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