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

large-cap stocks

The Last Group of Burgeoning Stocks

By | February 18, 2014

The Income Stocks Investors Now CraveQuite a bit of speculative fervor has been zapped out of this market, which is helpful for the longer-run trend.

With the exception of biotechnology stocks, trading action has softened in initial public offerings (IPOs), 3D (three-dimensional) printer stocks, cloud software stocks, and even a lot of restaurant stocks that only recently were very hot.

The stock market is just a continuing cycle of fluctuating investor sentiment. Valuations among junior … Read More

Why the NASDAQ Will Outperform the Other Major Indices in 2014

By | January 14, 2014

Why 2014 Bodes Well for Blue ChipsSo far this year, the NASDAQ Composite Index has outperformed the other large-cap averages, and this is a positive indicator.

At the beginning of last year, blue chips shot out of the gate with uncommon capital gains, and as confidence in the rally grew, investors slowly felt more comfortable with more speculative issues, which are often listed on the NASDAQ.

After a pronounced consolidation during the summer of last year, … Read More

Small-Caps vs. Large-Caps: The Dilemma Solved

By | August 13, 2013

Small-Caps vs. Large-Caps: The Dilemma SolvedIf you had to choose between buying Intel Corporation (NASDAQ/INTC) and Phoenix New Media Limited (NYSE/FENG), which stock would it be? This is the kind of dilemma we are currently witnessing in stock market trading, as investors look at the risk they want to assume.

In 2013, the preference has been for small-cap growth stocks such as Phoenix New Media over the older and established Intel, which provides a nice … Read More

Small-Cap Stocks the Place to Be—If Economic Growth Is Real

By | June 14, 2013

Small-Cap Stocks the Place to Be—If Economic Growth Is RealMake no mistake about it. The wealth in America continues to rise as it is in other parts of the world. Fueling the creation of wealth has been the easy monetary policy, which has essentially pushed up the stock market to its record-highs.

Now the economy is also on the mend; albeit, it has largely been driven by the lure of easy money. Yet growth is growth. At this juncture, … Read More

Why It’d Be Foolish to Give Up on Small-Caps

By | April 26, 2013

Foolish to Give Up on Small-CapsSmall companies tend to perform well coming off a recession like the one we had in 2008.

The beginning of the year was excellent for small-cap stocks as the Russell 2000 led the way with a 12% advance in the first quarter, including a 6.2% move in January.

We have been seeing some flight to safety in the risk preference of investors.

April has seen some profit-taking emerging in small-caps, … Read More

Investors Down-Shift Risk, Search for Safety Ongoing Theme for 2013

By | April 10, 2013

Search for Safety Ongoing Theme for 2013If the first-quarter earnings season turns out to be as bad as the experts expect, then it may be time to look for safety. That means lightening up the load on high-risk stocks and shifting your focus to companies that you know will be around 50 years from now.

The search for safety appears to be the ongoing theme this year, especially within the blue chip stocks that make up … Read More

How to Supercharge Your Portfolio

By | January 29, 2013

Supercharge Your PortfolioSmall-cap stocks will be a key driver of the broader market should the U.S. and global economies continue to improve. In 2012, small-cap stocks trailed only the technology sector as far as performance. The Russell 2000 advanced the most in December. If 2013 is a strong year for the economy, small-cap stocks will deliver.

Small-caps have been impressive so far in 2013, as the Russell 2000 is up six percent, … Read More

Look to Higher Beta Small-Caps to Increase Portfolio Returns

By | December 6, 2012

Increase Portfolio ReturnsSmall-cap stocks performed better than both the S&P 500 and the DOW in what was a cautious November, as the economy showed encouraging growth in several key areas. Early on in December, small-caps are leading with a 0.12% advance versus a 0.64% decline for the S&P 500. The Russell 2000 is above the only key index that’s above its 50-day and 200-day moving averages (MAs), based on my technical analysis…. Read More

Looking for Income? Get It Before the Fiscal Cliff

By | November 29, 2012

Get It Before the Fiscal CliffThe fiscal cliff is currently dictating the trading action in the stock market as we near December and the year’s end. The worry is that if the Bush-era tax cuts are allowed to dissipate, the end result would likely be a significant jump in taxes, including those on dividends. The prevailing dividends tax of 15.0% is extremely accommodative to income seekers, but under the fiscal cliff, we could see the … Read More

Why You Should Stick with the Airplane
Builders and Parts Suppliers

By | September 5, 2012

Why You Should Stick with the AirplaneThe Boeing Company (NYSE/BA) estimates China will require 5,000 aircraft, valued at around $600 billion, over the next 20 years. The company is looking at the new “787 Dreamliner” as its big play on wide-body jet travel despite development issues.

Boeing’s chief rival Embraer S.A. (NYSE/ERJ), the European builder of the “Airbus,” announced on Tuesday morning that it estimates the global demand over the next two decades to be for … Read More

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