Archives for April 2018

April 2018 - Page 17 of 19 - Money Morning - Only the News You Can Profit From

Microsoft Stock Can Survive Volatility, Unlike the "Popular" Tech Plays

The race to the first $1 trillion market cap is on. The tech behemoths in the stock market led the way in 2017, and investors cheered as they saw their brokerage accounts swell.

And while many think either Apple Inc. (Nasdaq: AAPL) or Alphabet Inc. (Nasdaq: GOOGL) will be the first to hit a $1 trillion market cap, Microsoft Corp. (Nasdaq: MSFT) may actually be first.

Here's why we're so bullish on Microsoft stock...

Here's What March Told Us About the Coming Bear Market

You've seen this in cheesy Western movies: an armed standoff that often begins with some variation of "This town ain't big enough for the both of us."

That's where we are now with stocks and bonds. And we're rapidly approaching the point where the town ain't big enough for either of them.

The U.S. Treasury continues to pound the market with massive amounts of new supply, but Treasuries held their own this month and even rallied a bit.

Instead, stocks caught it in the neck.

So what's happening? Nothing good…

It's a simple question of liquidity, or, more specifically, the lack of it.

As I've been telling my Sure Money readers, there's no longer enough liquidity in the system to support bullish moves in both stocks and bonds.

If one rallies, the other must be the source of funds for that rally. So in March, stocks were the liquidity sink that supported the rally in bonds.

And don't be fooled by events like we saw this past Thursday, when there were rallies in both stocks and bonds: Neither baseball, nor life, nor markets move in a straight line. They are full of surprises.

But those surprises happen in the context of a broad arc. And right now, that arc is pointing down. 

The rapidly deteriorating momentum in stocks and bonds tells us a lot about the bear market I see around the corner...