Bears are finally having a moment. They deserve it, they’ve had a really tough few months. And there are plenty of them – bears outnumbered bulls by 16% in the mid-August AAII sentiment survey. I guess misery loves company. Hug a bear because today, we’re adding another positive to our stock market outlook – the… Read more »
Money rarely leaves markets. It rotates. We’ve seen a lot of this lately. Let’s visualize the August 2025 stock market rotation. There’s been a big change in equity behavior in August. Growth stocks have come under pressure while defensive areas thrive. Some will ascribe this bobbing and weaving to nervousness heading into Jackson Hole tomorrow…which… Read more »
Co-founder Luke Downey joins Sam Vadas on Schwab Network to discuss seasonal market weakness & volatility. Normal Summer Volatility, or Market Weakness? Late summer usually sees liquidity dry up, which in turn can cause bouts of volatility. Luke likes Palantir (PLTR), Meta (META), Microsoft (MSFT), which have performed well after earnings and guidance. On the… Read more »
The last 2 days have shown an incredible appetite for smaller companies. Some groups saw the most inflows all year. Investors finally believe that interest rate cuts are coming soon. That’s caused 2 small-cap power thrust signals to fire. After the July CPI print came in better than expected, it virtually guaranteed that a rate… Read more »
On the heels of an epic rally, stocks are finally taking a well-deserved breather on renewed growth jitters. That’s not keeping the bears from griping about elevated valuations. You hear it everywhere. Today, we’ll follow the data to debunk this popular misconception. When you study history, high valuations are supported by strong CapEx Growth. We’ll… Read more »
Welcome to August. The summer often brings elevated volatility. It’s a period defined by seasonal weakness and market rotation. Humans are accustomed to seasonal changes. In winter, extra clothing is needed for warmth. In spring, moods lighten up as flowers bloom. In late summer, hurricane season ramps up as ocean temperatures rise. Similarly, repeated patterns… Read more »
Major indices break higher day after day. That said, plenty of outflows have been noted recently. Under the surface, market breadth is deteriorating. 2025 has taught us that anything is possible with markets. We’ve gone from a market crash to market exuberance in record fashion. Incredibly the S&P 500 Technology Sector has jumped 50% from… Read more »
Records have been set. And with the S&P 500 up roughly 30% since early April, most pundits are skeptical the rebound can continue. History proves otherwise. On July 14, we made a macro case for equities in 3 Positive Policy Tailwinds for Cyclical Stocks. We’ll keep riding this bull. These 3 momentum signal studies highlight… Read more »
Luke joins Nicole Petallides with Schwab Network to discuss stocks to buy on a seasonal dip. Buy Seasonal Dips, META, TSM & LRCX Key A.I. Stocks Co-founder Lucas Downey expects a seasonal pullback after the steep SPX rally. He urges investors not to panic and instead buy on the anticipated dip. Read more »
Stocks continue to defy the crowd. The April low to July peak is the best in 5 years. At some point, markets will catch their breath. You’ll want to be aggressive. If you see any summertime stock pullbacks: buy the dip. We’ve been as bullish as anyone can be throughout the crash and rip of… Read more »