• Four Bullish Plays For Your Portfolio

    by  • April 16, 2013 11:31 am • Broad Market Analysis, Quick Hits • 3 Comments

    While in New York two weeks ago, I shot three videos for Yahoo! Breakout with Jeff Macke.  My thoughts on the VIX and volatility can be found here, but in this video Jeff and I discussed some specific ideas.

    You can watch the full video interview here.

    We’ve been bullish consumers stocks for awhile now and the main reason is expectations are so very low in the face of strong price action.  Remember, we like to buy low expectations, not low prices.

    Check out how low consumer confidence is with the SPX back up near recent peaks.  Think about it, the SPX is back to 2000 levels, yet overall consumer confidence is more than cut in half.

    Here are the four plays from this area and why I liked them, straight from Jeff Macke himself.

     

    About

    3 Responses to Four Bullish Plays For Your Portfolio

    1. rk
      April 17, 2013 9:45 am at 9:45 am

      Consumer Confidence in economic conditions such as jobs, inflation, income growth and their prospects is low. How does that relate to stock market expectations?

      • April 17, 2013 10:52 am at 10:52 am

        Great point. It is all part of the bigger picture sentiment backdrop. We’ve talked a lot about how very few trust this rally and this can be bullish from a contrarian point of view. Well, lowered expectations on the economy is another bullet point in the overall sentiment picture.

        • rk
          April 17, 2013 11:57 am at 11:57 am

          Thanks – is there not a danger that continued low expectations in the economy become self fulfilling? How long can the contrarian view remain viable?

    Leave a Reply