A Monster Move!

Just a monster move in stocks today! The S&P 500 did in one day what it took about 6 months to do last year. All because somebody at the Federal Reserve intimated that they may be close to being done raising interest rates. Well the market has hoped that for about 10 months! The action today reminds me of what it was like at the end of 1994 when the Fed signaled that it was done raising rates. Maybe too soon for that kind of market pin action but a positive tailwind overall for stocks if we are close to being done. If the end of the tightening cycle is near then financial stocks should do well and they still pay great dividends.

Healthcare and drug stocks could be close to finding a bottom soon as well. I really like financials if rates are close to peaking. We will need to do some work in the medical world to figure out if these companies are done losing price. If so there are some potential great values in both individual names and ETFs setting up in this sector.

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