“Weak Manufacturing Measures Raise Specter of US Economic Slowdown”
This headline on CNBC cracks me up that the market sold off on the first trading session of September because of increased fears of recession. That is utter non-sense because the manufacturing data they site was up month over month...and better than most of the readings the past 2 years.
So what caused the sell off to start September?
And should you be worried?
We will tackle these 2 questions and more in today’s Reitmeister Total Return commentary.
Market Outlook
Just to solidify the point that the economy is just fine is to look at the current state of the overall economy. Our best friend in that regard is the GDPNow reading from the Atlanta Fed.
Right now, it points to +2.0% growth for the quarter and the Blue Chip panel of Economists are calling for a fairly similar +1.8% outcome. Nothing in that spells recession...and even if it was softer than some expected, then let’s not forget that rate cuts are on the way which should boost growth in the future.
Perhaps the market sold off to start September because of the big gains already in hand this year and just ripe time to take some off the table.
Or perhaps it is because some investors see that September is the worst month of the year historically for stocks and just want to lighten the load in case this September is also a bit rough. (Kind of a self fulfilling prophecy when you think about it that way).
Or perhaps stocks were weak because the Presidential election in November looks very tight. That uncertain outcome is often a reason for stocks to pullback before the election...and then bounce higher immediately after the election.
Or perhaps it fits under the heading “stuff happens”. As in some days the market goes up...and some days it goes down.
That is why its best staying focused on the big picture of things. And that is the simple fact that we are still very much in a long term bull market. And the S&P 500 (SPY) will make new highs soon enough.
Just remember that we have not even celebrated the 2 year anniversary for this bull market (that will be in October). Given that the average bull lasts for a little over 5 years says that there is still plenty of time left on the clock to enjoy more gains no matter how many selloffs, pullbacks and corrections we have along the way.
The key event for investors at this time is still the September 18th Fed meeting where we find out their rate cut intentions. Hard to be bearish knowing the Fed will soon be lowering rates which is clearly beneficial to the economy...corporate earnings...and stock prices.
Until that time, stay bullish. Just use any unjustified dips to put money into the most attractive stocks. My favorite 11 stocks are shared below...
What To Do Next?
Discover my current portfolio of 11 stocks packed to the brim with the outperforming benefits found in our exclusive POWR Ratings model. (Nearly 4X better than the S&P 500 going back to 1999).
All of these hand selected picks are all based on my 44 years of investing experience seeing bull markets...bear markets...and everything between.
And right now this portfolio is beating the stuffing out of the market.
If you are curious to learn more, and want to see my 11 timely stock recommendations, then please click the link below to get started now.
Steve Reitmeister’s Trading Plan & Top 11 Stocks >
Wishing you a world of investment success!
SPY shares were trading at $551.75 per share on Tuesday afternoon, down $11.93 (-2.12%). Year-to-date, SPY has gained 16.82%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.
Stock Alert: What Goes Up... StockNews.com
