AWM Blog

Tech Weakness Continues to Drive Market Direction

Despite yesterday’s reprieve, stocks are pushing lower today with Technology stocks leading the way. Over the past few weeks, we have seen tech stocks trending lower, lead by the FAANG stocks – Facebook, Amazon, Apple, Netflix and Google (Alphabet). These stocks have been the darlings of the stock market rally over the past 4 years, but have now rolled over, and are dragging the rest of the tech sector, the…

Tech Stocks Continue to Diverge

In the past few weeks we have witnessed a marked change in leadership for the overall stock market, with Technology stocks, which were the previous leaders, weakening significantly. As evidence of this, we have seen the tech-heavy NASDAQ Composite Index trending lower, while the Dow and S&P 500 have maintained their strength. I have written about the FAANG stocks (Facebook, Apple, Amazon, Netflix and Google) – these stocks have been…

Shifting trends show that Millennials are living their lives differently from past generations and there are strong implications for investments

The following link to a very interesting article shows the shifting trends within the millennials generation that we should all pay close attention too when evaluating investments. These trends are likely to continue to develop, and future generations will build upon these trends, driving meaningful shifts in the economy. These shifts will drive many businesses into extinction, while others will grow dramatically, and still others will be born of these…

Amazon Buys Whole Foods for $13.7B in Cash – Is this the end of brick and mortar grocery?

Amazon announced today that it will acquire Whole Foods for $13.7 billion in cash. Following this news Whole Foods was up almost 30%, a great day for shareholders of both Whole Foods and Amazon, but not so great for the rest of the retail grocery segment (Kroger is down about 9% today). The grocery segment is nothing new for Amazon – they have been selling a multitude of typical grocery…

Fed Rate Increase As Expected; Shrinking Balance Sheet Much More Interesting

As expected, The FOMC (Federal Open Market Committee) of the Federal Reserve raised the Fed Funds rate by 1/4-point to a range of 1% to 1.25%. They further projected that one more rate increase will be needed this year. This is all pretty much as was expected (the futures were indicating a 99%+ likelihood on a 1/4-point raise). What was much more interesting is that the Fed now plans to…

FAANG Stocks Try To Rebound After Dismal Two-day Slide

The so-called “FAANG” stocks (Facebook, Amazon, Apple, Netflix, and Google (Alphabet)) have been the stars of the stock market during the long and profitable bull market. Over the past 4 years, Over the past four years, Facebook gained 544%, Amazon jumped 268%, Apple increased 170%, Netflix advanced 441%, and Alphabet added 124%. These technology names have outperformed the tech-heavy Nasdaq Composite – up 84% during that time, and the S&P…

Techs falling apart despite overall market stability

Okay, I know it has been a while since I posted anything to my blog. Life is busy and complicated! Looking at the markets today, we are seeing a very interesting divergence between the NASDAQ, which is tech-heavy and is down about 1.75% today, and the S&P 500 and Dow, which are both about flat at the moment. The Dow was up about 100 points this morning, and the NASDAQ…

Fed leaves rates unchanged; cuts projected hikes to 2 from 4 in 2016

The Federal Reserve held interest rates steady Wednesday (3-16-16) and scaled-back its expectations for further rate hikes for 2016 and 2017. At its December meeting, the Fed projected four rate hikes in 2016, but new estimates released today reduced that number to two. Fed officials also cut their expectations for economic growth and inflation. In addition to the two rate increases this year, the Federal Open Market Committee now projects…

Back on the air!

I would like to formally announce that I will be back on the air on KZSB AM 1290 radio starting this Friday at 8:37 (approximately) to provide weekly economic and financial market wrap-ups. After about a year off, I will be happy to be back on the radio with Baron Von Herron and hope you will listen in each week. Feedback is welcomed!

Allen Wealth Management First Quarter 2016 Newsletter

So far in 2016 the bears have a decided advantage. We have seen all major indexes take sizable hits, with the low point (so far) on January 11th. The NASDAQ Composite, which closed 2015 at 5007, dropped as low as 4,419, or by 11.7%. Although the markets have rebounded somewhat from the lows, we are still decidedly negative so far in 2016. I began reinvesting cash as the market corrected…