Media

Institutional Investor


Portfolio Perspective: U.S. Equities Are Positive for Now

John Kosar, Asbury Research

This week our table shifts to a more equally balanced, neutral distribution of key near-term U.S. stock market factors from a positive one for the previous two weeks. The market started off the week in a bullish near-term environment stemming from the positive one-month rate of change in the S&P 500 amid strong, positive exchange-traded fund asset flows, low volatility and the recent 2 percent rise in the Nasdaq 100 above its 4,147 benchmark high hit in September 2000. Moreover, the latest investor sentiment data suggest that the mid-October advance is not yet over.

There are some headwinds to be aware of, however, such as widening corporate bond spreads and continued weakness in a positively correlated German DAX. Our research suggests that it would currently take a decline below 2,000 in the S&P 500 — a 2 percent drop from Friday’s close — to put enough long positions into the red to trigger a correction.

John Kosar is the director of research at Schaumburg, Illinois-based financial information services provider Asbury Research.

Asbury Research subscribers can view the entire report from which this excerpt came from by clicking here.

Investors can view our latest appearances in the financial media by clicking here.

All Contents © Copyright 2005-2017 Asbury Research LLC. The contents of all material available on this Internet site are copyrighted by Asbury Research LLC. unless otherwise indicated. All rights are reserved by Asbury Research LLC., and content may not be reproduced, downloaded, disseminated, published, or transferred in any form or by any means, except with the prior written permission of Asbury Research LLC., or as indicated below. Members of Asbury Research LLC. may download or print web pages for personal or academic use, consistent with their user agreement. However, no part of such content may be otherwise or subsequently reproduced, downloaded, disseminated, published, or transferred, in any form or by any means, except with the prior written permission of and with express attribution to Asbury Research LLC. Copyright infringement is a violation of federal law subject to criminal and civil penalties.