The latest issue of the Iacono Research Weekend Update has been posted to the website and is now available for subscribers here.
There will be no changes to the model portfolio or the buy ratings this week, but last week’s Fed meeting and economic reports are detailed along with what is increasingly being called a stock market bubble in the following discussion topics:
The executive summary is as follows:
After some very good economic reports in the U.S. and more talk by Federal Reserve hawks about raising interest rates sooner rather than later, U.S. equity markets experienced their heaviest selling in two years after notching new record highs the week prior. Violence in Gaza, Ukraine, and elsewhere added to stock investors’ skittishness while also pushing the U.S. dollar higher and this pressured commodities markets.
A rebounding China economy sent share prices higher there, however, this was about the only asset class that saw gains as even safe haven investments such as U.S. Treasuries and precious metals moved lower. The financial media is now full of warnings about a long overdue correction (or much worse) as the two worst months of the year for stocks – September and October – quickly approach. For the week, the model portfolio fell 1.4 percent and is now up 8.2 percent for the year.