Performance

Performance Derby

Mar 25, 2024 2 min read paid

The stock market rally should continue to broaden as investors realize that the MegaCap-8 are not bulletproof. Tesla has competitors such as China's BYD , which on Monday lowered the starting price of its Seal electric sedan to just under $25,000. Last week, on Thursday, the Justice Department filed an antitrust lawsuit against Apple. Also recently, US antitrust officials filed antimonopoly lawsuits against Amazon, Google and Meta Platforms.

Ed Yardeni

Happy Old & New Years!

Dec 31, 2023 2 min read paid

The S&P 500 rose 24.2% last year after falling 19.4% during 2022 (chart). Since the start of the data in 1928, years with gains of over 20% were followed by years of 5.9% gains on average. Excluding recession years, the second-year gains averaged 9.7%. Losses during recession years averaged 10.1%. Down years for the market are more likely than not to be associated

Ed Yardeni

Roaring Stock Market

Dec 21, 2023 2 min read paid

The stock market came roaring back today led by the stock prices of companies that are benefitting from the Roaring 2020s. Strong results and guidance from Micron Technology boosted shares 9% today, while lifting other chip and semiconductor equipment stocks (chart). Micron is the largest US memory chip maker. Its chips go into a wide range of products. The rally since the correction low on October 27 has been breathtaking

Ed Yardeni

July was Red Hot

Jul 31, 2023 2 min read paid

July was hotter than usual. We aren't referring to the weather but rather to the 3.1% increase in the S&P 500. That compares to an average increase of 1.7% for the month since 1928, with an average gain of 4.9% for the 58 up years and an average 3.2% loss during the 38 down years (chart). So it is fair to say

Ed Yardeni

Market Call: Hot But Sunny

Jul 23, 2023 2 min read paid

The stock market may be too hot, but the outlook for the economy remains sunny. There are signs that the hottest sectors of the market may be starting to cool off a bit, while the coolest sectors are warming up. It's time for the laggards to be leaders for a while. In other words, Information Technology and Communication Services stocks might chill, while Energy, Financials, Industrials, and Materials

Ed Yardeni

Time To Rotate The Tires & The Portfolio?

Jul 20, 2023 2 min read paid

The S&P 500 fell 0.68% and the Nasdaq 100 lost 2.28% today on disappointing earnings calls from Tesla and Netflix. They also weighed on the S&P 500 Information Technology sector, which was down 2.0%. Neither Tesla or Netflix is a technology company according to S&P. Tesla is in the S&P 500 Consumer Discretionary sector (down 3.4% today), while

Ed Yardeni

Sitting Bull

May 31, 2023 2 min read paid

The bull market seems to be taking a rest. The S&P 500 has stalled just below 4200 since the start of May (chart). That's good considering that several vocal bears predicted that the S&P 500 would fall back down towards its October 12 low during the first half of this year. However, those who recommended going away in May (as the old adage says)

Ed Yardeni

Stock Market Rally 'Don't Get No Respect'

Apr 5, 2023 1 min read

The comedian Rodney Dangerfield often lamented during his hilarious monologues , "I don't get no respect." That applies to the stock market rally since October 12. The naysayers are saying that it is a bear market rally and that the S&P 500 will soon be falling below its October 12 low. They also claim that only the MegaCap-8 stocks have participated in the rally, while

Ed Yardeni

Market Call

Apr 3, 2023 2 min read paid

No news is good news. Every day that nothing terrible happens in the banking system is a good day for the stock market. That helps to explain last week's strong rally (up 3.5%) (chart). Yes, but this morning, there's bad news on the energy front as OPEC+ is cutting oil production sending oil prices higher. That's good news for the S&P

Ed Yardeni

Performance Derby: Stocks YTD & In February

Mar 1, 2023 1 min read paid

The S&P 500 was up 3.4% ytd through the last day of February (chart). All of the 11 S&P 500 sectors with the exception of Information Technology gave back some of their January gains (or widened their losses) during February (chart). The market was discounting a soft landing in January. During February, the concern was an inflationary no-landing scenario. It's been a tug

Ed Yardeni

S&P 500's Comeback Kids

Feb 4, 2023 2 min read paid

In our opinion, the latest bear market started on January 3, 2022 and ended on October 12, 2022. The S&P 500 fell 25.4% over that 282-day span. The decline was led by a 30% drop in the forward P/E of the S&P 500 and a 6.2% increase in forward earnings over that period. At the beginning of last year, we expected a correction,

Ed Yardeni

Betting On S&P 500 Sectors In 2023

Jan 30, 2023 1 min read paid

While stock picking may be back in style and momentum investing is running out of momentum, we are still keeping track of the relative performance of the 11 S&P 500 sectors to one another and to the overall index (chart). Our four favorite sector picks for this year are Energy, Financials, Industrials, and Materials. These are our overweight recommendations. We would market-weight Information Technology and Health Care. We

Ed Yardeni

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