Three to four storms brewing for the US stock markets

October 23, 2023
wwblog@smartest-data.blog

THE storms brewing in the stock markets

After a difficult week, the worst in the past month, the S&P 500 dropped below its 200-day average. With the storms brewing, technical selling increased stock losses.

The three major U.S. indexes, the S&P 500, Dow Jones Industrials, and Nasdaq 100, declined over the week, reaching 2-week lows. This in itself is not a huge issue, individual stocks and their indexes go up and down all the time.

The key is, after the summer weakness and entering the earnings season, let’s look at what’s pushing the markets down. Then what could save the markets? If looking for gold as an indicator, the gold price rose to a 10-week high. Investors are looking for safe-haven assets. Gold is one of these assets, along with U.S. Treasury bonds.

There are storms brewing

There are three to four storms brewing for the U.S. stock markets. First off, traders want to see stocks go up and down. Literally playing “Cat and Mouse”. No problem, intraday trends can be and are set by market movements. Intraday traders can profit from this.

But while market volatility is Mean reversing, most daily price movements are random. Thus, I am talking to stock investors. Investors are market participants who have an investment horizon of at least 12 months.

All of my Blog Posts contain Affiliate Links to products or services that are known to me. I may receive art any time a commission if a purchase or subscription is made via an Affiliate link.

Subscribe to

THE STORMS BREWING WILL PASS, TIME HORIZON IS KEY

Stock investors with a time horizon of at least to the end of 2024. These investors must invest in stocks with a total return, price plus dividends, of at least 8%. For stocks rated on higher valuation multiples. Thus the PE Ratio, Price to Sales or Price to Free Cash Flow the specific Equity Market Risk Premium must be higher. Over 12% total return would be a start. Thus, the major Tech Stocks in particular, the Magnificent Seven, must be producing a total return of 12%. Stock investors do have legitimate concerns over their return prospects.

what are the potential remedies to the storms?

What’s pushing the stock markets down and what are the potential remedies. The first and most important issue facing stock investors are the rising yields on U.S. Treasuries. In particular at the long end of the U.S. Yield Curve. It is important to keep in mind, with regard to the Long-end of the U.S. Yield Curve. Interest rates are expected to increase, they are still turbulent. In 2024, the yield curve in the U.S. should invert.

Long-end of the Yield curve

Thus, short term interest rates could come down. But this is not where the real action will be for stocks. This will be at the Long-end of the Yield curve, where there could be an increase of 100 basis points or even more. The second is that after the terrorist attacks in Israel. The third is the broader issue around the U.S. economy. Then the fourth is selecting a speaker of the House of Representatives. I thought this one would have been easy.

Investment ideas from 30 million users. Invest in 3,000+ assets on a trusted and friendly platform.

77% of retail investor accounts lose money when trading CFDs with this provider

Subscribe to

Traders from all around the world use online trading to benefit from the world’s largest and most liquid markets, trading up to $6 Trillion per day.

Due to innovations in technology investors and traders can now invest in a range of securities. Forex, Commodities, Energies, Indices & Stocks, easily to trade with FX PRIMUS at the click of a button.

BARCHART: QUICK STOCK IDEAS

Stocks and ETFs to Own.

PRICE SURPRISES AND VOLATILITY

surprises both upside and downside.

STOCK PERFORMANCE LEADERS AND LAGGARS

Stocks below are ranked by Barchart based on the Highest Daily Percentage Change.

The charts used in this Blog Post are from Barchart. Barchart is a financial data and technology company that provides financial market data, news, analysis, and trading solutions.

smartest-data blog

Three to four storms brewing for the US stock markets

THE storms brewing in the stock markets

There are storms brewing

All of my Blog Posts contain Affiliate Links to products or services that are known to me. I may receive art any time a commission if a purchase or subscription is made via an Affiliate link.

Subscribe to

THE STORMS BREWING WILL PASS, TIME HORIZON IS KEY

what are the potential remedies to the storms?

Long-end of the Yield curve

Subscribe to

Traders from all around the world use online trading to benefit from the world’s largest and most liquid markets, trading up to $6 Trillion per day.

Due to innovations in technology investors and traders can now invest in a range of securities. Forex, Commodities, Energies, Indices & Stocks, easily to trade with FX PRIMUS at the click of a button.

BARCHART: QUICK STOCK IDEAS

PRICE SURPRISES AND VOLATILITY

STOCK PERFORMANCE LEADERS AND LAGGARS

PLEASE CLICK THE LINK TO THE DISCLAIMER