MARKET-ALERT – Rumblings Up, Down, and Around Wall Street, Issue #459 dated Sunday, December 17, 2017, with Ray Dirks and his team of securities analysts and money managers from RAY DIRKS RESEARCH.
‘Twas a fabulous week on Wall Street in the United States, where stocks advanced sharply in the week ended December 15. The Dow Jones Industrial Average gained 323 points, or 1.3%, to 24,652, while the Standard & Poor’s 500 index rose 0.9, to 2,676. The Nasdaq Composite climbed 1.4% to 6,937.
In last week’s issue, Rumblings promised to give you the list of Rumblings’ Ten Favorite Stocks for 2018 – And here is the list – Aflac (AFL)
Hartford Financial (HIG)
International Paper (IP)
Oramed Pharmaceuticals (ORMP)
Pluristem Pharmaceuticals (PSTI)
And next week, we will provide our readers/investors with the most important details so that, after consulting with your investment adviser, you can decide which companies to buy at this time.
For additional perspective, let’s look at “The Trader” column in tomorrow’s Barron’s, The Dow Jones Financial and Business Weekly, where the headline reads: “Stocks Stampede to New Records on Tax News”. The column begins: Everyone needs a goal, and that goes for the stock market, too. For the past month, the market has been aiming for the day when tax reform legislation gets passed. But what happens after it passes?
Keith Parker, UBS strategist, estimates the tax plan will boost S&P 500 earnings by 7% to 9% next year. Parker estimates that just 40% of the impact from a lower corporate rate is priced into stocks. And don’t expect to wait a long time for the rest of the boost to be priced into the market. “We would expect another swift repricing after passage,” says Parker, who sees the S&P hitting 2,800 during the first quarter of 2,800.
As Rumblings has been saying for a long time, investors should switch their fixed-income holdings into U.S. common stocks, such as those in our list of Ten Favorite Stocks for 2018 listed above. Stay tuned for our next issue in order that you may act as soon as possible…!
And we think investors should place no more than 1% of their investable funds in the securities of any one corporation. It pays to diversify…!