People point to a long list of things that could go wrong as justification for sitting on the sidelines because they want to be “right.” The world’s most successful investors focus on being profitable. Be “in to win” or you won’t...win, explains Keith Fitz-Gerald, editor of 5 with Fitz.
Consider these stats...
June performance:
- S&P 500: Up 5.18%, best month since January.
- Nasdaq: Up 5.07%, fourth consecutive positive month.
- Dow: Up 3.69%, best month since November.
Second quarter:
- S&P 500: Up 6.99%, third straight quarter of gains.
- Nasdaq: Up 11.2%, back-to-back positive quarters.
- Dow: Up 2.55%, on track for a third winning quarter.
Year-to-date and first half:
- S&P 500: Up 14.51%, best first half since 2018.
- Nasdaq: Up nearly 30%, best first half since 1983.
- Dow: Up 2.94%.
Meanwhile, if I had a buck for every investor who’s argued with me over the years about why/how Apple (AAPL) couldn’t get bigger or more valuable, Jeff Bezos would be vacationing on my yacht. At the risk of sounding like a broken record, Team Cook is just getting started! My only fear is that I may not own enough... shares, that is.
Apple (AAPL)
As for the May Core PCE, it came in at 4.6% versus the 4.7% expected by economists who, mind you, haven’t been able to get a dang thing right for a long time. But that’s a story for another time. Traders, of course, love it.
Why?
Because that data point—a reading that’s only 0.1% better than expected—is being interpreted as a sign that Team Powell may have another data point at its disposal that makes the case for not doing another rate hike. So, they’re getting on the gas—meaning they’re buying.
We’ve talked about this many times, which is why I won’t bore you to tears. But keep in mind that traders fear the cost of money, not the Fed. So, when they think the Fed will hike, they’ll hit the sell button to get under VAR (Value at Risk) levels. If they think the Fed may back off or at least pause, they will lever up and “buy up” like they just did and, practically speaking, since last October.
Bottom Line?
Optimism fuels innovation.
Innovation fuels opportunity.
Opportunity fuels profits.
Ergo... invest in optimism!!!
