Doing some basic math, the odds continue to favor a strong year for stocks in 2023.
There are some people out there who think the Nasdaq is the stock market. There are others who "only buy growth stocks".
I don't know what kind of masochist you need to be to think that way, but both of those are very foolish approaches to life.
The Nasdaq is full of growth stocks. And growth stocks historically underperform and make little progress when interest rates are rising. I'm not sure if you heard, but interest rates have been rising!
Since the Stock Market bottomed in June, the majority of stocks and sectors are up and to the right. It's only the biggest losers that are down, and there aren't that many of them. It's really just those nasdaq / growthy stocks that the masochists are focused on.
From a seasonal perspective, Pre-election years are historically some of the most bullish years we have in the market. Here's what the 4-year cycle looks like as we head into 2023:
We retired our "Five Bull Market Barometers" in 2020 to make room for a new weekly post that's focused on the three most important charts for the week ahead.
This is that post, so let's jump into this week's edition.
In this weekly note, we highlight 10 of the most important charts or themes we’re currently seeing in asset classes around the world.
New Relative Lows for Growth
The relationship between growth and value has leaned heavily in favor of cyclical stocks as we see fresh new lows in this ratio. As long as this downtrend is intact, the best course of action is to remain overweight value-oriented areas and stay away from growth.
