Stock Market, Bad News is Good News

Stock Market, Bad News is Good News

Do not conflate the market today with the economy today

Show notes

This week on The MarketBeat Podcast Kate’s guest is Michael Wang, founder of Prometheus Alternative Investments. Michael has done stints at Citigroup as well as hedge funds and understands the market from various perspectives. In this interview, he discusses why he believes institutional investors are positioned bearishly at this time, and how individuals should approach their portfolios as the summer rally seems to have fizzled.

Topics in today’s interview include:

-Why Michael says “Do not conflate the market today with the economy today”

-Why the summer rally was due to better-than-expected Q2 earnings, as well as lower commodity prices, despite high inflation numbers

-Why tech stocks, along with other growth names, are sensitive to interest rates, affecting their share prices today

-Was the summer uptrend just a bear market rally? It looks that way.

-Will the market continue to hold above its mid-June lows?

-In which sectors does Michael see potential right now? Does he see continued interest in so-called FANG names?

-Why does Michael see strength in the semiconductor space, despite poor earnings or guidance?

-How retailers like Target are pulling forward bad news, whereas pandemic darlings like Peloton pulled forward good news.

-Investors know the economy is challenging, but they are managing their expectations about earnings reports for that reason

-How 2009 and 2020 were good examples of why you shouldn’t conflate the market with the economy. Markets price in economic recoveries before they happen.

-Easy tips for holding stocks and avoid buying at the top and selling at the bottom

Find Michael at www.prometheusalts.com

Michael’s special offer for MarketBeat listeners to access the Prometheus platform:

https://app.prometheusalts.com/invite-code 

Enter code: BIRD for access

Links mentioned in this episode: https://www.marketbeat.com/all-access/


This podcast is hosted by ZenCast.fm

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