November 4, 2021
By Scott Wohlers
The stock market has set new high after new high this week. In fact, records were made in all three major indices, the S&P 500, the Dow Industrials, and the NASDAQ. The Bull recently wrote that this period has been a seasonally strong one for stocks. Seasonal trends are no guarantee, but there is enough history to at least pay attention to the influence. This one looks to be following the script.
The good news is that there is broad participation among many different sectors and stocks in this advance. It is as if investors are positively reassessing the prospects for business in general. This is not to say there has not been a high degree of individual stock volatility. On Tuesday this past week, Avis Budget doubled in price in response to unexpectedly good earnings while Chegg was cut in half when results disappointed. Thankfully, all this is being washed out in the averages. Over 80% of reports have met or exceeded expectations!
A broad advance backed by good results and investors believing that there is more to come bodes well for good returns this quarter. Individual selection and vigilance remain important. After all, when the inevitable correction comes, it will be important to own quality assets that will recover and again thrive. In the meantime, enjoy and stay steady my friends.
The Lonely Bull
