There’s a Big Difference Between What People Say and What They Do.
I received a great email last week about sentiment. The question was: “What do you do when two different sentiment measures conflict?” For example, the NAAIM survey (a measure of active manager investment levels) has been declining lately, but Investors Intelligence (a measure of newsletter sentiment) shows an increasing number of bulls. See charts below. My first answer is the price action of leading growth stocks overrides ALL sentiment measures. In other words, that is [...]
The Perfect Storm
There is something big going on in the stock market. It’s something bigger than most people realize. I like to call it The Perfect Storm. It’s a favorable combination of technicals, fundamentals, global growth, interest rates, sentiment, a pro-business government, and a new technological revolution. The reason I’m excited about it is I’ve been around the market for 20 years and I’ve learned that you have to take advantage of these healthy situations while they [...]
The Four Types of People in this Market
1) The first type is the investor who is sitting out, mostly in cash, barely invested, or refuses to participate. They either feel the market is overvalued or we are about to crash any day. It’s impossible to help these people because they have already made up their mind about what the market SHOULD do rather than focusing on what it is ACTUALLY doing. For example, a potential client I spoke to said he wouldn’t [...]
Three Reasons for the Strength in Biotech
I screen the market every night looking for strong fundamental and technical stocks. One thing I try to identify is themes and leading sectors. Over the past two months, I have noticed more and more Biotech stocks showing up on my screens. Not only are they setting up technically, but they are also breaking out and producing strong gains. There are three main reasons for this: 1) During the Presidential election, both sides discussed lowering [...]
VIDEO: Yahoo Finance Final Round Show 9/20/17
Here is the video clip from my Yahoo Finance appearance on their Final Round show on 9/20/17. I joined host Jen Rogers and Yahoo Finance Editor-in-Chief Andy Serwer for the first half of the show. I can be reached at: jfahmy@zorcapital.com
How Trump Is Going To Shock The World…Again!
No one thought he was going to run for President, and he did. No one thought he would ever get the Republican nomination, and he did. No one sure as heck ever thought he would win the Presidency, and he did. When he did win, the majority of pundits thought the stock market would crash, and it did just the opposite. Now, President Trump will shock the world and the financial markets again because no [...]