A Quick Look At The Markets And Tech Stock Insight By Paul Meeks

As measured by the S&P 500, U.S. stocks have bounced — and what a rebound it has been — 22% from the March 23 low, which was only 12 trading days ago. That’s madness, but at least we’re heading in the right direction. But where do we go from here? Is this a bear market rally, or will the market keep rising? I need more information to make that call. I’m hopeful but unconvinced.

My next key data point is the quarterly reporting season that begins in about two weeks. That’s when most public companies announce their financial results for the three months ended March 31 and, more important, give guidance for the June quarter and perhaps even for the rest of 2020. As to their forecasts, what can managements possibly say that’s constructive while the coronavirus continues to stall a significant portion of our economy and that of our major trading partners?

Nonetheless, I see some winners in my tech sector. There are even a few stocks that are up in 2020, with the S&P off 18%. I also have circled names that are well-positioned for the post-coronavirus world in which we’ll move further away from analog businesses and double down on digital companies. Right now, I’m dabbling in a few tech stocks, but I won’t be all-in until I have a better understanding of the coronavirus-related risks to our economy and specifically to my covered firms. Believe me, when I think that the coast is clear, I’ll be fully invested in my risk-on stocks led by semiconductors because they always lead tech investors into and out of trouble when the economy shifts.

Please stay tuned. In the meantime, reach out to me with questions, comments, or requests for further data. We’re in flux, and you deserve updated information.

Investment Advisory Services offered through Independent Solutions Wealth Management, LLC, an SEC Registered Investment Adviser.
All opinions expressed Paul Meeks are solely Meeks’ opinions and do not reflect the opinions of Independent Solutions Wealth Management, LLC (“ISWM”). You should not treat any opinion expressed by Meeks as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion for educational purposes only and does not constitute investment, legal or tax advice, an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. Meeks opinions are based upon information he considers reliable, but neither ISWM nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Meeks, ISWM, its affiliates and/or subsidiaries are not under any obligation to update or correct any information provided on this website. Meeks statements and opinions are subject to change without notice. No part of Meeks compensation from ISWM is related to the specific opinions he expresses. Past performance is not indicative of future results. Neither Meeks nor ISWM guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. Before acting on information, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from an investment adviser.

Comments are closed.