Today, we saw a nice reversal in the market. The market was down – but it popped up, giving a nice profit to those of us holding long positions. But we’ve seen this before – a nice little pop, followed by another downturn. These minor upturns and downturns have many people wondering about the overall direction of the market – will it continue its general uptrend, or will it start to veer down? It’s reminiscent of Groundhog Day, in which according to the tradition the behavior of the groundhog determines if spring will arrive early or late. If the groundhog comes out of its den and sees its shadow, spring will arrive six months late – if it does not see its shadow, spring will arrive early. Just like that, we’re waiting to see what will happen with the market. In this live appearance on Varney & Co., D.R. explains what he thinks is fueling its ebb and flow. Click here to watch.
Industrial stocks, those companies that make things that hurt when you drop them on your foot, are better to buy during certain time periods than others. GE is a perfect example of an industrial stock. It operates through sectors such as aviation, power, additive manufacturing, lighting, transportation, and oil and gas, among others. While the company is set to officially exit from the Dow Jones Industrial average – for the first time in over a century – it remains a juggernaut in these sectors. GE is currently trading at $13 a share, which begs the question – should we buy the stock? According to D.R. in this live appearance on Varney & Co, it all depends on inflation. Click here to see his opinion on whether the company is a buy.
(Hint: It’s based on a little something he heard from Jack Welch in business school).