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By Alex
Eule | Monday, April 19 Playing
It Safe. You didn't have to
search far to grasp the general mood of markets today. A continued slide
in the price of Bitcoin pretty much sums it up. The cryptocurrency
tumbled over the weekend and continued to fall this morning before a small
rebound. At a current $56,000, Bitcoin is down 13% since its all-time high
last week. Investors
are taking a break from risk, even if just a short one. Sure enough, it was a
rough-day for more expensive growth stocks, too. The tech-heavy Nasdaq
Composite fell 1%, while the broader S&P
500 was
off just 0.5%. Trading activity was light, with total volume just
72% of this year's daily average. The source
of the sudden risk-off mood isn't entirely clear. Earnings reports are
clearing their high bar. With roughly 10% of companies in the
S&P 500 having reported earnings, the first-quarter growth
forecast is now 30.2%, well above the 25% expected just a few weeks
ago. Meanwhile,
the U.S. has reached a major milestone in the battle against Covid-19.
As of today, every American adult is now eligible for a vaccine. A year ago,
that mark seemed nearly impossible. Now it's here. There are two ways to look
at the news: Either investors have been anticipating it for six months, which
is why stocks are near all-time highs. Or they have yet to fully embrace
the reality of a fully vaccinated public, leaving plenty of upside for stocks
from here. Louis Navellier, chief
investment officer of long-term focused Navellier & Associates, is taking
the upside bet. In a note to clients, he writes that investors have
tired of economic and earnings numbers that are basically perfect.
"We'll never get a better earnings environment than this," he
writes. "Because the market's tired and bored right now, any weakness in
strong stocks is a great buying opportunity." Navellier
says investors have little choice but to keep buying stocks: Money is
sloshing around all over the place. You can thank Treasury Secretary Yellen
and Jerome Powell for boosting the money supply. That money will
gravitate to stocks and drive them higher. I think a few weeks from now,
we'll see that today is probably one of the best buying opportunities you will
ever have. |
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DJIA: -0.36% to 34,077.63 The Hot
Stock: Albemarle +3.6% Best Sector:
Real Estate +0.3%
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