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The Weekly Update 2/16/2024

| February 16, 2024

The Weekly Update 2/16/2024

 

That could be a BGO!

 

February is usually one of the poorest performing months of the twelve.  In prior election years February has traditionally been a downer.

This year February has been good, so far, and that is a key point.  Why?  Well, when normal trends are acting opposite, it usually means something else is happening underneath the surface.

Perhaps, in this case, it is the fear of missing out, (FOMO).  So, to catch up we have seen monster up gaps in the prices of the top Big Tech companies.

History has proven quite convincingly that when a handful of companies are leading the way and most of the stocks on the exchange are down, a correction is close.  Not a crash, but a normal back and fill of say -10%-15%. 

No one knows the future, including me, but there are a few “Blinding Glimpses of the Obvious” (BGO) out there.  Like this piece created by Charlie Bilello at Creative Planning on 2/5/2024.

Yes, one tech company really is more valuable than all of these energy companies combined.  If that isn’t a BGO of overvaluation, I don’t know what is!  But when will it end and how?  Well, that will be the fun part to observe.

I’m interested in your thoughts, comments, and observations.  Feel welcome to call, email, or stop by the office and say Hi.

Respectfully,

James O. Lunney, CFP®

CERTIFIED FINANCIAL PLANNER™ Professional  

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.