Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

investor sentiment

Why This Company Is a Consistent Winner for Investors

By | October 20, 2014

One Company That’s Proven It Can Adapt to the MarketplaceAmid all the turmoil in capital markets, I’m reminded of all the good corporate earnings being released.

Of course, the stock market is a system of discounting future business conditions and the recent sell-off has been pronounced, but stocks have come so far over the last several years. If the catalysts were deflationary pressures among oil prices and global economic activity, a little haircut in share prices is well deserved…. Read More

The Biggest Risk This Coming Earnings Season

By | October 3, 2014

Biggest Risk This Coming Earnings SeasonFinancial reporting is ramping up and what corporations actually say about their businesses is the best market intelligence available to investors.

Acuity Brands, Inc. (AYI) is in the business of making lights for indoor and outdoor applications. Based in Atlanta, it’s highly likely you’re already using this company’s products without even knowing it.

The business of manufacturing lighting is not front-page news, but that doesn’t matter because for this company, … Read More

Top Stock to Watch Among These Three Winning Techs

By | June 25, 2014

Top Three Winning Techs, but Only One to WatchFor years Micron Technology, Inc. (MU) struggled on the stock market as both competition and demand in the personal computer (PC) market took its toll on the chip maker.

Now the company is experiencing a bit of a renaissance, and the stock has been trending higher on genuine business growth.

In my mind, if Micron Technology is experiencing improved business conditions, it’s a positive indicator for almost everything else. This … Read More

The Downside to Dow 20,0000

By | June 13, 2014

Where the Stock Market Could Head NextWith the Dow Jones hitting 17,000 being pretty likely in the not-too-distant future, from there, it’s only another 18% or so until the Dow hits 20,000, which is pretty incredible.

These numbers seemed so unrealistic just a few years ago but now, it’s not too farfetched. The most amazing thing to me is that stocks still haven’t experienced a material price correction since the financial crisis.

Stocks aren’t necessarily stretched … Read More

A Stock Market Break? These Indices Say No

By | June 12, 2014

These Turning Indices Show How Stocks Can Go HigherThe great monetary expansion is still alive and well and the effect on equity securities continues to be profound.

But what I find striking about the stock market’s continued advancement is that it’s blue chips that are pushing through to new record highs.

Speculative fervor in several sectors has diminished, but hasn’t completely disappeared. But it’s the big brand-name companies—a lot of which pay dividends—that just keep on trucking as … Read More

Rise in Financials a Good Sign for the Broader Market?

By | May 29, 2014

Financials Supporting Bullish Stock Market SustainableThis stock market continues to show material resilience as financials have turned a bit and are helping the S&P 500 index.

Wells Fargo & Company (WFC) just hit a new record-high on the stock market with a forward price-to-earnings ratio of just under 12, offering a 2.8% current dividend yield.

Most of the big banks have actually been in a downtrend in recent months, including Bank of America Corporation (BAC), … Read More

Multi-Month Price Consolidation in the Cards

By | May 16, 2014

How Profit Choppy Market HighThere still is no real trend in the equity market. One day, stocks sell off big-time; the next, the S&P 500 and Dow Jones Industrial Average hit new record-highs.

This is a very tough market to figure; anything can happen when monetary policy is highly accommodative.

A lagging NASDAQ Composite isn’t a worry. Neither is the Russell 2000 index. Stocks won’t come apart so long as so many large-caps are … Read More

Where to Find the Best Price Momentum Right Now

By | May 15, 2014

Sector Showing Best Price MomentumIf investor sentiment has changed to, once again, favor blue chip stocks over the market’s more speculative issues, oil and gas still have sectoral price momentum.

This is evident in the price action of many of these stocks, as well as the rate at which new secondary offerings are being taken up by institutional investors.

Domestic oil and gas producers are still pretty hot in a market less willing to … Read More

Numbers for This Sector Might Look Dim Now, but Future Looks Bright

By | May 1, 2014

Numbers Looking Down Sector What About LaterThe reckoning that’s going on in high-valued, former momentum stocks is continuing and if the trend continues, there should be some very good trades to be had.

One sector of the stock market that’s been consistently hot until recently has been the 3D printing area. It’s recent cooling off is not because these stocks aren’t still growing like mad, but that the marketplace decided to book some profits from the … Read More

How Past Investment Trends Predicted This Stock Market Action

By | April 30, 2014

Speculative Fervor Declines on Growing RiskIt’s just the same old story with stocks. One day they’re up; the next day they’re not.

If 2013 was a breakout year from the previous long-run recovery cycle, 2014 is a year of choppiness.

Stocks just can’t seem to latch onto any particular trend. A convolution of influences from earnings results to geopolitical events continue to beat down what positive sentiment sprouts from the data.

It’s no surprise to … Read More

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