Looking Past Omicron and the 3 Lessons Learned from the Market in 2021 Our Portfolio was rewarded handsomely for not buckling under the pressure of the recent Omicron scare as the S&P 500 (SPY) went on a wild ride. Yes, I could say...
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Our Portfolio was rewarded handsomely for not buckling under the pressure of the recent Omicron scare as the S&P 500 (SPY) went on a wild ride. Yes, I could say that patience comes hand in hand with over 40 years of investing experience. However, I would say it really comes from my value investing roots where we often are not in agreement with the price action we see before us. So hurray for value investing! And hurray for us! Now on with this week's market commentary. Read on below….
(Please enjoy this updated version of my weekly commentary published December 30, 2021 from the POWR Value newsletter).
Market commentary will be on the shorter side today. That's because I would rather you spend your time checking out my annual "lessons learned" commentary first published in the Reitmeister Total Return newsletter last night. And then shared on StockNews.com today. More about that further below.
As for the overall market, the Santa Claus rally did arrive. And now we find some resistance at 4,800. Hard to complain about that when you realize we started the year at 3,756. That's about 3X the average annual return for the market.
This is happening all the while Omicron spreads like wildfire. Today we find ourselves with nearly 2X as many new covid cases as during previous peaks. And on a personal basis I know more people currently with covid than during the ENTIRE past 2 years combined.
If there is a silver lining, it is that Omicron seems to come with much milder symptoms. This is the main thing keeping stock prices aloft as it shouldn't have too much negative economic impact on a broad basis.
But yes, some industries in travel and leisure will see a curtailing of revenue in coming months because of this surge. Cruise lines especially.
I suspect that early January will look quite similar to December where the news of higher Covid cases may at times create pullbacks. And as the smoke clears, the catalyst of the long term bull market will have things bouncing back higher once again.
Is it possible things could be worse than that with a more meaning 5-10% correction?
Yes. But just as likely it is possible the market looks past Omicron to the green pastures ahead leading to a very prosperous January. And as they say "As goes January...so goes the rest of the year".
Long story short, the market is bullish till proven otherwise. But we will sleep with one eye open for any signs that tells us that we should get more defensive in our portfolio.
Now back to the main event. Be sure to read my recent commentary describing the key lessons from 2021 that should help us be more successful investors in the years ahead.
3 Key Investing Lessons Learned from the 2021 Stock Market
Portfolio Update
Since I took over this service on 12/1 we have enjoyed a gain of +6.86%. That is nicely ahead of the +4.63% tally for the S&P 500. And certainly more impressive than the +2.27% return for the small caps in the Russell 2000 that is, in many ways, a more realistic benchmark for this service.
No...not every month will be as profitable. However, the methods used to attain these results should continue to show their merits more times than not as we go forward.
What To Do Next?
If you'd like to see more top value stocks, then you should check out our free special report:
What makes these stocks great additions to any portfolio?
First, because they are all undervalued companies with exciting upside potential.
But even more important, is that they are all A rated Strong Buys according to our coveted POWR Ratings system. Yes, that same system where top-rated stocks have averaged a +30.72% annual return.
Click below now to see these 7 stellar value stocks with the right stuff to outperform in the coming months.
All the Best!
Steve Reitmeister
CEO StockNews.com & Editor of POWR Value trading service
SPY shares were trading at $476.01 per share on Friday afternoon, down $0.15 (-0.03%). Year-to-date, SPY has gained 29.01%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as "Reity". Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity's background, along with links to his most recent articles and stock picks.
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