My Stock/Market Alert is an event driven brief about a stock OR the market when noteworthy action occurs. Today is certainly a welcomed update due to the amount of green on the screen.
Expect the frequency of my Stock/Market Alert notes to be consistent with meaningful moves in a specific stock held by BAM Portfolios or the stock market.
Wall Street rejoiced as they saw a sea of green on their screens today. The market climbed to new intraday record highs as the rally kept broadening beyond a handful of tech-focused mega cap stocks. This speaks to a healthy rally on Wall Street that led to hefty climbs late this week as shown in the chart above. Wall Street shook off Friday’s unpleasant June reading on wholesale prices, with the S&P 500 index (SPX) rising 30.81 points (0.5%) to 5,615.35, up 0.9% for the week; the Dow Jones Industrial Average ($DJI) rising 247.15 points (0.6%) to 40,000.90, up 1.6% for the week; the Nasdaq Composite ($COMP) added 115.04 points (0.6%) to 18,398.44, up 0.3% for the week. Both the S&P and Dow Jones set intraday record highs today. The most interesting gains came from the small-cap Russell 2000 Index which hit its highest point in more than two years, closing today at $2,148.27. This is a massive 6.11% increase this week alone.
Wall Street’s broadening rally followed the sharp drop in June CPI seen yesterday. It brought to mind when rate cut hopes rose as inflation fell and smaller stocks began to gain on mega caps late last year. That was a short-lived move because rate cuts vanished from the picture amid stubborn first-quarter inflation. The idea then and now is that lower rates can improve consumer and business sentiment, leading to increased spending. Smaller companies also tend to do better in times of lower rates because they rely more on borrowing than larger ones. The odds of a Fed rate cut in September remain above 90%, according to the CME FedWatch tool.
The sector rotation from tech heavy growth stocks into value stocks reminds us why we diversify. While the Russel 2000 had an incredible week, the Nasdaq gained only 0.2% after clawing its way back from a 2.24% loss on Thursday. Diversification helps to not only mitigate risk your portfolio, but also capture broad market gains like the market has experienced this week.
Blackhawk Wealth Advisors employs a collaborative, multi-generational model by using tax efficient and risk mitigation strategies to maintain your current lifestyle while meeting your long term needs and goals. BWA brings together all aspects of your financial life with the expertise of ERPE and BAM.
Blackhawk Asset Management
At BAM, we take the research we obtain from ERPE and utilize it to manage our clients’ assets. Our founder, John Gardner, CFP®, CPM®, offers high net worth investors experienced investment portfolio management based on a disciplined methodology. John is one of the nation's approximately 400 Certified Portfolio Managers and has managed billions of dollars in equity portfolios over his professional career since 1984. He has created four effective, proprietary portfolios: Thematic Growth, Strategic Income, Diversified Value, and Global Opportunity, which have helped clients prosper.
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Equity Research & Portfolio Evaluation
Equity Research & Portfolio Evaluation (ERPE) utilizes its propietary approach in analyzing investments. Its proven success researching equities is based on a blend of fundamental and technical analysis. ERPE's time-tested Top 10 Tenets guide the investment process to achieve Portfolio Optimization: This is through minimizing risk without sacrificing return.
