Watching the FANGs for an Entry Point

According to Bespoke Institutional, stocks broke a 58 day streak of trading without a market move of over plus or minus 1% on August 10th. Since then stock market volatility has picked up some but not dramatically. Volatility can be a good thing for alert investors looking for attractive entry points to buy stocks on sale. Below is a market cap weighted chart of Facebook, Amazon.com, Netflix and Google, also known as the FANGs. The chart shows that while the group is up dramatically, price action stalled in the early summer and has pulled back some since then. Furthermore, the months of August and September have historically been tough months for stocks. While we don't think that the gro

Stocks and Bombs

For the last week or so the conflict of words between North Korea and the United States seems to have changed from a rapid boil to a slow simmer, giving equities a boost during the first half of the week. Stocks did experience substantial weakness on Thursday followed by mild attempt at a rally on Friday. But military games on the Korean Peninsula are scheduled to begin on August 21st which is sure to turn the heat back up. Having said that, I wanted to take a look at past U.S. stock market reactions to previous military conflicts. In the chart above I have marked major US military conflicts, leaving out smaller conflicts like Grenada, Panama, etc. There are two things that stand out to me

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