Market Summary
Bullish news came Wednesday from the Federal Reserve, at which Fed Chair Jerome Powell indicated no further rate increases in
Given the accommodative response of central banks to the global growth deceleration and market turmoil experienced last year, we remain bullish in several areas in which we would “buy the dips.
Gold and Copper
As we have stated before, there are many gold buyers around the world, including some central banks. A dovish U.S. Fed should be supportive for gold. China’s stimulus efforts, and the conclusion of a U.S./China trade deal when it
U.S. Stocks
We would buy the dips on U.S. stocks. At this juncture we particularly like “second-tier†tech or old-line tech — that is, tech without some of the political and regulatory overhangs afflicting some of the larger denizens of Silicon Valley. We have in mind companies such as Cisco [NASDAQ: CSCO], IBM [NYSE: IBM], Dell Technologies [NASDAQ: DELL], and Adobe [NASDAQ: ADBE].
China and Emerging Markets
For reasons stated in several recent letters, we remain bullish on domestic Chinese shares, although after the market’s strong move since January, we would wait for dips to enter or add to positions in A shares. We continue to like China primarily because of the government’s telegraphing of market-supporting views, and because of positive domestic retail investor sentiment, which is anticipating a reacceleration of economic growth in the second half of the year. We like emerging markets more broadly, particularly China’s workshop countries, although some commodity-based EMs could also do well.
Thanks for listening; we welcome your calls and questions.
Bullish news came Wednesday from the Federal Reserve, at which Fed Chair Jerome Powell indicated no further rate increases in
Given the accommodative response of central banks to the global growth deceleration and market turmoil experienced last year, we remain bullish in several areas in which we would “buy the dips.â€
Gold and Copper
As we have stated before, there are many gold buyers around the world, including some central banks. A dovish U.S. Fed should be supportive for gold. China’s stimulus efforts, and the conclusion of a U.S./China trade deal when it
U.S. Stocks
We would buy the dips on U.S. stocks. At this
China and Emerging Markets
For reasons stated in several recent letters, we remain bullish on domestic Chinese shares, although after the market’s strong move since January, we would wait for dips to enter or add to positions in A shares. We continue to like China primarily because of the government’s telegraphing of market-supporting views, and because of positive domestic retail investor sentiment, which is anticipating a reacceleration of economic growth in the second half of the year. We like emerging markets more broadly, particularly China’s workshop countries, although some commodity-based EMs could also do well.
Thanks for listening; we welcome your calls and questions.
Please note that principals of Guild Investment Management, Inc. (Guild) and/or Guild’s clients may at any time own any of the stocks mentioned in this article, and may sell them at any time. Currently, Guild’s clients own CSCO and IBM. In addition, for investment advisory clients of Guild, please check with Guild prior to taking positions in any of the companies mentioned in this article, since Guild may not believe that particular stock is right for the client, either because Guild has already taken a position in that stock for the client or for other reasons.
