Why the Market Had a Weak Week

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.
[piggy bank with a downward trending tail]

****************************************
Note from the Publisher

For all of you dividend fans out there, I am thrilled to announce that we have added www.DividendInvestor.com to the Eagle family of products. With screening tools, an all-star ranking of dividend stocks, the best dividend calendar on the web, personalized alerts and more, this site is a great complement to our investment products. Check it out today… go to www.DividendInvestor.com now!

Roger Michalski
Publisher, Eagle Financial Publications
****************************************

A Weak Week in Equities

Stocks faltered this week, as the S&P 500 slumped about 1.6% (through midday Friday). The weak week was a far cry from where stocks stood seven days ago, when the S&P 500 enjoyed a 2.4% surge.

After vaulting to new highs last Friday, I was expecting stocks to give back and consolidate. What I wasn’t expecting was the rather tepid earnings we’ve seen from many big companies such as IBM (IBM), United Technologies (UTX) and Verizon (VZ).

Of course, earnings on the whole have been decent. Although not yet technically over, the majority of really important earnings have come in, and here we see that of the 171 S&P 500 companies that have reported, 77% are beating earnings per share (EPS) estimates. Those EPS beats are, on average, about 5%. On the revenue side, only about half of the companies have beaten estimates, while about half have fallen short.

Interestingly, the market has been held up largely by a few big tech stocks making new all-time highs. Stocks such as Google (GOOGL), Amazon.com (AMZN), Facebook (FB) and Netflix (NFLX) are carrying the indices of late.

Exclusive  PowerShares Fund Screens Quality Holdings for You

At this point, I think earnings are largely a known quantity, and now traders are focusing on pending uncertainties such as the Fed’s next move. Will there be a rate hike in September? The Fed Funds Futures are not pricing one in, but many on Wall Street are expecting a hike.

And what about the recent tumble in gold, oil and emerging markets?

GLD_072415

OIL_072415

eem_072415

What will the fallout be of these events on U.S. markets?

The bevy of unknowns here is one reason why we are holding cash positions at the highest levels of the year in our newsletter portfolios.

The way we see it, there is no rush to get into equities here. The markets are replete with uncertainty right now, and the path of least resistance appears like it’s lower from here.

If you have money on the sidelines right now, then that’s not a bad place to keep it, in my opinion. Of course, that doesn’t mean there aren’t opportunities out there to put money to work.

For more on what we like right now, including how our subscribers are taking advantage of those opportunities, check out my Successful ETF Investing newsletter today!

‘ETF Success with Doug Fabian’ Goes National!

Are you a regular listener to my radio show, “ETF Success with Doug Fabian”?

If not, then I hope you soon will be, and here’s your chance.

Today, I am very excited to announce that my weekly radio show is now syndicated nationally throughout the Salem radio network.

The table below shows the station, city and day and time the show will be aired (check your local listing for start dates, as not all stations carry the show yet).

Exclusive  Bruce Lee vs. Ayn Rand Philosophy: Which is Better for Investors?
WAFS-AM Business Radio 1190 Atlanta Sundays 6:00 am
WGKA-AM AM 920 The Answer Atlanta Sundays 10:00 am
WHK-AM AM 420 The Answer Cleveland Sundays 6:00 am
WTOH-FM 89.8 FM The Answer Columbus Sundays 5:00 pm
KVCE-AM AM 1160 The Business Authority Dallas Sundays 2:00 pm
WDTK-AM News Talk 1400 Detroit Sundays 8:00 am
KGU-AM AM 760 Business Radio Honolulu Wednesdays 2:00 pm
KNTH-AM AM 1070 The Answer Houston Weekdays 9:00 pm
KHTE-FM 96.5 FM The Answer Little Rock Saturdays 8:00 am
WGTK-AM AM 970 The Answer Louisville Saturdays 7:00 am
WZAB-AM AM 880 Business Radio Miami Sundays 2:00 pm
KYCR-AM AM 1570 Business Radio Minneapolis Sundays 6:00 am
WNYM-AM AM 970 The Answer New York Sundays 4:00 pm
WBZW-AM AM 1520 Business Radio Orlando Saturdays 8:00 am
WNTP-AM News Talk 990 AM Philadelphia Sundays 9:00 am
KKNT-AM 960 AM The Patriot Phoenix Saturdays 5:00 am
WPGP-AM AM 1250 The Answer Pittsburgh Saturdays and Sundays 5:00 pm
KSAC-FM Money 105.5 FM Sacramento Saturdays 9:00 am
KLUP-AM AM 930 The Answer San Antonio Saturdays 6:00 pm
KCBQ-AM AM 1170 The Answer San Diego Sundays 3:00 pm
KDOW-AM AM 1220 Business Radio San Francisco Sundays 8:00 am
KKOL-AM AM 1300 Business Radio Seattle Wednesdays 3:00 pm
KLFE-AM AM 1590 The Answer Seattle Saturdays 1:00 pm
WGUL-AM AM 860 The Answer Tampa Saturdays 5:00 pm
WWRC-AM AM 1260 The Answer Wash. DC Sundays 4:00 pm

The syndication of “ETF Success with Doug Fabian” is something I’ve been looking forward to for some time, and it’s a dream come true for me.

Exclusive  Beating the Market: Surprise, Surprise, the Monkeys Win!

I hope you’ll join me in living this dream each week, on the station, day and time near you.

On Thinking Big

“You have to think anyway, so why not think big?”

— Donald Trump

Nobody’s grabbing more headlines these days than Donald Trump. Love him or hate him, the man knows how to make a splash. In this quote, he also gives us some sound advice on success, urging us to think big no matter what.

Wisdom about money, investing and life can be found anywhere. If you have a good quote you’d like me to share with your fellow Weekly ETF Report readers, send it to me, along with any comments, questions and suggestions you have about my audio podcast, newsletters, seminars or anything else. Ask Doug.

In case you missed it, I encourage you to read my e-letter column from last week about the recent tech stock surge. I also invite you to comment in the space provided below.

previous article

Today, the U.S. government’s Bureau of Economic Analysis (BEA) released its latest Gross Output (GO) statistic, a broader measure of U.S. economic activity that I have been advocating for years, and it confirms little or no economic growth in the economy in 2015.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE