A repeat of last week – “a mixed week for our stocks . . . “ – although this one featured a plunge on Monday followed by recovering prices the rest of the week.
Nervous investors once again panic sold on Monday on news a giant Chinese commercial property developer would default on their debt payments due to income losses on empty buildings from COVID – and the prospect of the same happening here.
Good economic news prevailed here though (unemployment down, home sales up and building starts up), and the Fed offered encouraging comments, so institutional investors once again took the opportunity to add to their stock positons at reduced prices as they have done on prior price dips, which raised prices through the rest of the week.
Many of our stocks edged up slightly as a result, although some recent buys remain stagnant. With so few stocks moving significantly and none reversing direction, there are few, if any, trades this week.
Reminder: stocks on our list typically reverse their price trend direction about 4 times a year, at which times a trade is indicated – this means no action is required the other 48 weeks of the year.
September – a notorious down month historically – has thus far been uneventful despite the torrent of damaging actions (and inactions) coming from Washington.