Stocks Face A "Tech Wreck" And Rising Energy Concerns Heading Into Winter
Friend of Fringe Finance and well known financial news contributor - as well as 38 year veteran of markets - Kenny Polcari has been kind enough to share his most recent thoughts on the market.
Friend of Fringe Finance and well known financial news contributor - as well as 38 year veteran of markets - Kenny Polcari has been kind enough to share his most recent thoughts on the market with our readers.
I’ve been lucky enough to be friendly with Kenny for about a decade now, and he was the first guy to ever take me on what I can only describe as an unauthorized tour of the NYSE trading floor, where I got to personally tell several confused specialists and market makers that the Chinese names they were trading were frauds that didn’t even exist.
The tour didn’t last as long as I would have liked, to say the least. But I’ve always appreciated Kenny’s willingness to welcome people into his busy world for nothing in exchange, and his decades of experience, which gives you a pulse on markets that only time can help you recognize.
For those who aren’t familiar with Kenny or don’t recognize him from TV, he is Managing Partner of Kace Capital Advisors and Chief Market Strategist at SlateStone Wealth. He started his career on the floor of the New York Stock Exchange (NYSE) as an institutional broker back in the early eighties when the march of electronic trading was already taking its first steps, and the great bull was first learning to run.
Here’s his take on markets heading into the Friday, October 28, 2022, trading day:
The post has been lightly edited for punctuation and grammar.
Tech Names Now In Focus
Third quarter GDP revealed that the US economy ‘returned’ to growth – coming in at +2.6% - vs. the 1st and 2nd qtrs. of negative growth, but when you look at it, it wasn’t as strong as the media suggested.
Gov’t spending is 17% of the index and was up 2.4% - which is a 3rd qtr. phenomenon – that will go away, net exports contributed 2.8%, the most since the 3rd qtr. of 1980 and that isn’t likely to persist as a positive driver. But let’s not quibble about that now.
Other economic data included durable goods ex-transports – 0.5%, capital good ordered capital good shipped both lower by 0.7% and 0.5% respectively. And what is going on in Kansas City? Not much as the Kansas City Fed survey came in at -7 vs. the expectation of -2.
The tech names are now in focus and all battling a host of challenges…