Here are the main highlights for the week ending 17th September 2017:
· Costs from hurricanes amount to billions of dollars
· North Korea threatens Japan with more missile tests.
· White House to release outlines for tax reforms end of September.
Economists estimated the damages by twin hurricanes to more than $150 billion. It’d take months for normalcy to return. Repairs, job creation, and insurance claims will take considerable time to complete. The GDP will decline due to the natural disasters; the rebuilding is going to take some time to complete. Our thoughts are with those affected.
United Nations imposed new sanctions after North Korea launched nuclear test. The former urged for limits on the oil imports, textile exports ban, termination of overseas laborer contracts, suppress smuggling efforts and stop joint ventures involving other nations. China has joined the party too. It created fiscal pressure by freezing bank accounts belonging to their enemies. North Korea sought vengeance by flying missile tests over Japan.
The Treasury is going to report updates. It'll include interest rates for corporate taxes by the end of September. But the scope and timing of any tax reform remain unclear. No senator opines on the direction that the Senate Finance Committee will take on tax reform.
Let’s see how the stock market reacted to the news.
For the week, Russell Microcap is the leading index ETF. It gives a high weekly return of 2.70%. This is followed by Russell 2000 with 2.29%. Such outcome indicates that the investors are starting to be more aggressive in taking risky bets. For year-to-date, Nasdaq-100 or QQQ produces a powerful return of more than 23%. The nearest ETF is Dow Jones Industrial Average, DIA with 12% which is almost half of QQQ.
Many index ETFs are displaying bullish displays:
Here are the stocks that I'm currently holding. Although they're not household names (yet), I feel that low risk entries and strong fundamentals will carry them higher in the next several months. All of them except for GENC (industrial sector) comes from technology sector. In a bull market, tech and semiconductor industry tend to be the leaders. My holdings have zero debt/equity ratio as I don't believe in financial leverage over the long term. I've seen enough massacre during bear market to not be involved in financing your business. Finally, one of my potential big winners is APPF. It can go beyond 100% in profits by end of the year.
To follow my progress, follow here.
In this Fear & Greed Index, it's the extreme greed that is driving the market now. It made a huge leap from being fearful due to recent natural disasters for the last few months to the current high confidence. The irrational market can go higher than we expected, so take this emotion indicator with a pinch of salt.
Speculating on events such as the storm is different from investing. It’s tempting to predict how individual stocks will trade around an event such as a hurricane. But they tend to have only a short-term influence and are more concentrated.
The market stayed on course too. It continued the trend before a major hurricane.
So, don't allow events like a natural disaster to change your investment strategy.
You may consider selling your stocks to prepare for the possibility of more volatile markets ahead.