(Please enjoy this updated version of my weekly commentary from the Reitmeister Total Return newsletter).
First off, please be sure to watch the Members Only Webinar recorded yesterday. Here are some of the key topics covered:
- April Market Rewind
- Sell in May?
- Our Trading Plan
- Portfolio Position Review
- Hearty Q&A session
Speaking of webinars, on Thursday 5/6 we are having a new webinar called “Beware Value Stocks?”. Joining me will be our Chief Value Strategist, David Cohne, who will help me review the 3 fatal flaws of value investing.
Better yet, we will discuss how to easily solve these problems by applying our Top 10 Value Stock strategy with +38.63% annual returns. If that appeals to you, then click below to register.
Now back to this week’s market commentary…
Last Friday my commentary spoke about the market doing the “Hokey Pokey”. In essence, the market had a pretty strong April rallying up more than 5% to a new high at 4,218. And now it is time to take a rest.
So yes, 4,200 will prove to be a spot of resistance followed by some combination of pullback, consolidation, sector rotation. Or in other words…VOLATILITY.
We have seen this 1001 times before. And we will see it 1001 times more in the future. The point being this is the natural way of the market.
Rally > Resistance > Consolidation/Sector Rotation (aka volatility) > Build Energy to Breakout to New Highs.
Reity, why are you so confident this time isn’t different?
First, it is rarely different. And when it is you will see greater bearish catalysts at play.
Second, because I have been investing for 40 years so I have seen this 4004 times or more.
Third, low interest rates still make stocks 2.5X more attractive than bonds. (really…this is the biggest reason making it fairly unnecessary to continue the conversation…but we shall to lock this lesson into place).
Fourth, coming off yet another strong earnings season. Ample details shared in last week’s commentary.
Fifth, economic data continues to show improvement across the board. I have detailed this week by week in commentary. And most recently you have another strong monthly ISM Manufacturing report. No doubt ISM Services and Employment reports later this week will continue to point to continued economic expansion.
Sixth, the Coronavirus #s in the US are dropping as vaccine adoption is well ahead of pace.
Seventh, Biden’s State of the Union address was filled with lots of items that would spark economic growth. This is not Steve Reitmeister, or other Wall Street experts, agreeing that these are the RIGHT policies. It is simply a clear-eyed view that the government checkbook is WIDE OPEN which is stimulative to the economy > corporate earnings > share prices.
There is no reason to go beyond this point because the above is plenty good enough. So our game plan is to keep our calm and act like we have been there before (cuz we have 😉 )
This will allow us to not get shaken out of our quality stocks during this volatile period. Instead we will hang on with great confidence that they will rebound with gusto when the next bull run emerges. And if any great buy the dip opportunity emerges, then we will quickly take action.
What To Do Next?
The Reitmeister Total Return portfolio has outperformed the market by a wide margin this year.
Why such a strong outperformance?
Because I hand-pick the very best stocks from across the POWR Ratings universe—whether it’s a growth, value or momentum play—to bring you winning picks like JCOM, which bought subscribers of Reitmeister Total Return a +75.52% gain in just 5 months!
If you would like to see my latest advice on JCOM and unlock the current portfolio of 11 stocks and 3 ETFs, then consider starting a 30 day trial by clicking the link below.
Wishing you a world of investment success!
…but everyone calls me Reity (pronounced “Righty”)
CEO, Stock News Network and Editor, Reitmeister Total Return
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SPY shares were trading at $416.90 per share on Wednesday afternoon, up $1.28 (+0.31%). Year-to-date, SPY has gained 11.87%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...
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