Wednesday, July 26, 2017

Equity market's smooth sailing for now...

There has not been much of note going on in the equity markets lately.  Still, watching each day is a mostly enjoyable habit and a requirement for responsible management.  Other than the ongoing modest slide upward, there is no overall market phenomenon underway.  Individual stocks can trade sharply up or down based on news specific to them, and industry groups, like financial firms recently, can move in tandem, in their case upward.

GE is one of the most notable stocks as it is a state of sustained languor.  Recent advertisements for the firm on national television have heralded the diversity of its workforce.  With a firm this size that would by necessity be true and seemingly that is all the Immelt controlled company can come up with.  He desperately needs some legacy.

The fate of individual stocks can be demonstrated of Boeing today and 3M yesterday.  Boeing reported unexpectedly strong results and is up 10% today, an almost unprecedented move for a mammoth firm.  3M's results yesterday met analyst expectations but the outlook was not a positive as expected, and the stock declined 6%, another big move for a large firm.

Those examples suggest that all is not as easy going with this market as it appears on the surface.

Looking for new investments is always interesting, but with the market's levels now, it is challenging. Time for a small cap dive.


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