Global insight monthly -- Some November highlights

November 06, 2018 | Jeremy Goldfarb


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Key points from this months issue summarized for you in case you don't get to the read: Did you know that as of end of October, 39% of the S&P 500 was in full blown correction territory? That's 20% below their individual 52 week highs. 20% down. The quick summaries start on page 19 if you want to skip to that.

FULL PUBLICATION HERE

 

1- Equity decline is cyclical more that permanent (volatility jitters)

2- Corporate earnings are not dead however they may have peaked either this quarter or last. Beats are still there, as is growth.

3- Trade away -- the US/China trade dispute isn't going anywhere. Signs things are cooling somewhat (lately) however this is likely more permanent.

4- Move to value stock vs. growth. I was early on this admittedly, but the shift has likely arrived now. Banks anyone?

5- Canada continues to be a drag. I don't see this changing unless we get a major policy direction shift on commodities.

6- International has been tough sledding. Italy, Brexit, China.....Japan may be a bright spot, but most of us have been suckered by that before.

7- The US Dollar is strong, and that should stick around for the foreseeable future with no support loss in sight.

8- The CAD should keep pace unless there is a dramatic shift in policy from the bank of Canada