Stock prices around the globe continued to pull back over the past four trading days in response to investors’ fears regarding the effect that recently imposed tariffs and threats of additional tariffs might have on economies in major regions of the world.
Specifically, the Dow Jones Industrial Average fell by 365 points (1.5%), while the S&P 500 Index declined by 1.4%, the technology-laden Nasdaq Composite Index dropped by 2.5%.
The small-cap Russell 2000 Index fell by 2.4% from Friday, June 22 to Thursday, June 28.
Meanwhile, the European Monetary Union Index declined by 2.4%, Japan’s NIKKEI 225 Index fell by 1.1%, India’s BSE Sensex Index declined by 1.8% and China’s Shanghai Composite Index dropped by 3.6% over that same four-day trading period.
Looking forward, my research indicates that stock prices in general will rebound during the week ahead.
Readings on key economic indicators for the United States, the Eurozone, Japan and India suggesting that those economies will continue to expand at a healthy pace for the next few months.
My proprietary Overbought-Oversold Indicator also suggests that stocks will move higher during the coming week, with the reading on that short-term stock market indicator falling to substantial oversold territory on June 27-28.
Although our Small-Cap Profit Confidential portfolio moved essentially in-line with the overall U.S. stock market this week, our portfolio has continued to outperform the S&P 500 Total Return Index.
The value of our portfolio appreciated by 4.0% since the inception of our small-cap newsletter on April 13 of this year.
In comparison, the S&P 500 Total Return Index rose by 2.0% over that same period.
Small-cap winners galore
I’ve learned a very rewarding investing lesson that I’ve applied numerous times over the past 23 years. The big stock market winners share one common attribute: Near the beginning of the ascent of their shares, the companies offer revolutionary products or services, are market leaders in their respective industries, or both. A few examples of some big stock market winners that possessed the attributes outlined above are Netflix (NFLX), which I recommended to investors during October 2002; Intuitive Surgical (ISRG), which I bought and recommended during July 2004; Baidu.com (BIDU), which I bought and recommended during August 2006; and MercadoLibre (MELI), which I recommended to investors during October 2010. YES, sign me up! David Frazier’s powerful small-company picks that deliver index-beating gains, direct to you!
Small-cap winners galoreThe big stock market winners share one common attribute: Near the beginning of the ascent of their shares, the companies offer revolutionary products or services, are market leaders in their respective industries, or both. Some big stock market winners that possessed the attributes outlined above are Netflix (NFLX), which we recommended to investors in October 2002; Intuitive Surgical (ISRG), which we bought and recommended in July 2004; Baidu.com (BIDU), which we bought and recommended in August 2006; and MercadoLibre (MELI), which we recommended to investors in October 2010. Get up-to-date small-cap stock picks from David Frazier, editor of Small-Cap Profit Confidential.
Smarter cryptocurrency investmentsThe stock market crash of 2008 was the catalyst for his journey into alternatives. And interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. Keene Little wasn’t ready to risk his money yet but he was very curious, so he began charting Bitcoin’s technical patterns. What finally convinced him to dip a toe into digital currencies was seeing that they followed familiar price patterns that could be analyzed and successfully acted on. Now he shares those insights with subscribers to the Crypto Wealth Protocol.