Oil declined, but did not destroy the markets so, as one market maker was quoted as saying, “Party On!” It doesn’t look to stop there either… Futures, one hour before the open, are up… by some .30 to .67%. As Jackie Gleason was so famous for saying, “And, away we go!”
What to make of it… I don’t know. There’s only one reason. It’s not the technicals, they’re reading that market risk is off the charts. It’s not the fundamentals, they’re atrocious! Earnings have been poor, because the economy is so weak, and by many measures, appears to be getting even weaker! Nope, it’s none of those. It’s the simple matter of Free Money! With negative rates in Europe and Japan, and very low rates here in the U.S., money is so cheap to borrow, that it is being created willy-nilly out of thin air, and going right into the stock markets of the world. The central banks of the nations of the world are inflating a stock bubble like you would not believe, and like a game of musical chairs; the music is going to stop… only, there will be no chairs left!
I haven’t updated my timer after yesterday. I will, but don’t need to, to tell you risk is very high, by my technical measures.
Running my search, I find these issues to be among the very safest of dividend growing stocks… the same 19 suspects as previously: NKE, PSA, HRL, JKHY, SBUX, TJX, HD and LOW, EFX, COST, AOS, EL, NOC, FDS, CVS, SYK, UNH, NDAQ and FL.
Those exhibiting especially good strength at this time are: TJX, HD, EL, SYK and UNH.
I’ll become a buyer… later, considerably later!
Here’s to your successful investing!
Harold F Crowell