Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
S&P 500 – Is a 5% Correction Enough? - 6th Dec 21
Global Stock Markets It’s Do-Or-Die Time - 6th Dec 21
Hawks Triumph, Doves Lose, Gold Bulls Cry! - 6th Dec 21
How Stock Investors Can Cash in on President Biden’s new Climate Plan - 6th Dec 21
The Lithium Tech That Could Send The EV Boom Into Overdrive - 6th Dec 21
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Last Week’s Top News Had Nothing to Do With the Stock Market

Economics / US Economy Sep 01, 2015 - 12:45 PM GMT

By: ...

Economics

Michael A. Robinson writes: On Thursday, right in the middle of last week’s market chaos, an important bit of news came out that you may missed.

Here’s the news: The U.S. Commerce Department sharply revised upward its second-quarter gross domestic product (GDP) estimate. The agency now says the value of all goods and services in the nation for the second quarter grew at a seasonally adjusted 3.7% – that’s 61% higher than its earlier forecast.


That revised number proves something I’ve been sharing with you all for months now: Despite the turbulent stock market we’ve seen all year, the U.S. economy remains on solid ground six years into the recovery.

And that means, as long as you stay disciplined and keep using your Choppy Market Tools, now is great time to take advantage of all the buying opportunities this chaos has created. We’re still in the midst of what I think is a generational bull market – and you can invest with confidence for the long haul.

Moreover, as impressive as GDP growth is right now, I believe Commerce’s report understates the strength of the nation’s economy.

Today I going to break it all down. And I’ll show you how the indicators I follow tell me that now is a good time to keep investing in tech stocks.

Let’s take a look…

Getting Revved Up

I wasn’t surprised that growth was higher than what the government earlier believed.

That’s because I’m constantly on the hunt for hard empirical data upon which to base the investment recommendations I make to you. And that data tells me there are plenty of reasons for tech investors to remain optimistic.

Let’s start with what’s happening in the nation’s auto industry. Simply stated, sales here are just off the charts.

For the month of July, the last month for full data, new car sales rose 5.3%. The increase brought the annualized sales rate to 17.6 million units, roughly 18% higher than the 14.9 million average over the last six years.

Even more impressive is the fact that consumers accounted for virtually all of the sales. Analysts say fleet buyers, like car rental firms, were largely absent and that consumers focused heavily on high-margin SUVs and pickup trucks now that oil prices are so low.

This is good news for the economy as we near the end of the third quarter. It shows that consumers are willing to borrow to finance new vehicles, meaning they are confident about the economy and voting with their wallets.

Even better, it’s a particularly good sign for tech investors. The vehicles now running off the assembly lines are glitzy high-tech showpieces. Many are equipped with backup cameras, integrated Bluetooth wireless tech and dashboard infotainment systems that include advanced audio and onboard navigation.

In other words, new cars and trucks are equipped with a bevy of digital products that require numerous cutting-edge sensors and semiconductors.

And we see the impact the auto industry is having on the tech ecosystem reflected in global semiconductor sales data.

The trade group SEMI that serves the chip industry’s supply chain says global semiconductor sales in July sales came in at $1.59 billion. That’s a healthy 12.5% increase from the year-ago period.

And sales for the rest of the year look strong. SEMI says the closely watched book-to-bill ratio for July stood at 1.02. That means the industry is booking $102 in new sales for every $100 it bills clients.

When Housing Wins

Autos aren’t the only big-ticket items that consumers are rushing out to buy. The nation’s housing industry also has hit a high-water mark.

The National Association of Realtors says existing home sales for July hit 5.59 million units. That was the highest sales level since early 2007.

Within that bullish report, two facts jumped out at me. First, sales for July rose 10.3% from the year-ago level. Second, sales of existing homes have now increased on an annual basis for 10 consecutive months.

At the same time, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development are reporting robust sales of new single-family homes. The agencies said 507,000 new homes were sold in July, a 22.6% increase from the year-ago level.

And these days, just like cars, homes are part of the global tech landscape. Many are being outfitted with such smart appliances as programmable thermostats, refrigerators and other appliances.

Millions of consumers also are buying home-theater systems and installing or upgrading their Wi-Fi systems in order to speed up their Web surfing and media streaming.

The broadband experts at the Leichtman Research Group say the top 17 cable and telecommunication companies representing 94% of the market added nearly 1.2 million net additional high-speed Web subscribers in this year’s first quarter. That brought the number of high-speed households to 88.5 million.

No wonder electronics retailer Best Buy Co. Inc. (NYSE: BBY) beat the Street’s second-quarter forecasts by 3% with sales of $8.53 billion. Best Buy said it saw strong sales of large-screen TVs and major home appliances.

No Doubt

Meantime, reflecting the sales increase for big-ticket items, consumers are feeling very bullish about the future.

Consumer confidence in August jumped 10.5 points to 101.5, according to data compiled by the Conference Board, a leading economic forecaster. That’s the second-highest level in eight years.

Let’s not forget the U.S. Labor Department says new jobless claims remain near a 15-year low. This proxy for layoffs decreased by 6,000 to a seasonally adjusted 271,000 for the week ended Aug. 22.

You can see why I keep saying that now is the time to buy into – not flee – the market. Yes, concerns about China’s growth or the Federal Reserve raising interest rates could cause another sell-off.

But with the U.S. economy still showing solid growth, you should look at such dips as great buying opportunities.

And that’s why, in our next conversation, I plan to show you the three plays you should make right now.

These are stocks that will not only protect your portfolio from whipsawed markets, but also build your net worth for the long haul.

Until next time…

Source http://strategictechinvestor.com/2015/08/last-weeks-top-news-had-nothing-to-do-with-the-stock-market/

Money Morning/The Money Map Report

©2015 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in