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A Fantastic Finish

Jim Giaquinto

Hey everybody, Dave Bartosiak here filling in for Jim “The Count” Giaquinto. He’ll be back at the helm to kick off the New Year on Thursday.

You didn’t really think that 2019 would go out on a whimper did you? With the broad market rally we’ve seen this year, especially since October, there was no way we’d close out in the red. Today’s market was week overnight and early on with stocks coming down to new lows shortly before lunch time. Then the bears ran out of steam and the optimism took over.

Volatility was crushed and broad market averages all finished in the green. The Dow Jones Industrial Average added 76.3 points or 27 bps at 28,538.4. The S&P 500 added 9.5 points or 29 bps at 3,230.8. The NASDAQ Composite rallied 26.61 points or 30 bps at 8,972.6.

Today’s Portfolio Highlights

Not much going on with the bond market closing early today. The only additions to the portfolio today were from the Short List. The automated screen produced two new names today, adding both Baozun (BZUN) and Zayo Group (ZAYO). Two names were also removed from the list today, with both Weyerhaeuser (WY) and Palo Alto (PANW) coming out.

Tracey Ryniec said what we all have on our mind heading into next year. In her Insider Trader write-up tonight she said,

“The bigger question remains: can this bull continue to charge in January or will we finally see the pullback that everyone has been waiting for?

December 2019 turned out to be the exact opposite of December 2018.

The S&P 500 had its best December in 9 years. Last year was the worst December in a decade, since December 2008 when the financial crisis was in full swing.

But last year’s pullback, which scared many investors, also set up this year’s rally as stocks were relatively cheap going into the year.

What will be the fuel for stocks to go even higher in 2020 with valuations stretched?”

With the trade war being resolved bit by bit, the market actually has some catching up to do. Regardless of when that pullback happens, it has been one heck of a year.

 

Happy New Year,

 

Dave

 

 


 

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