Market Analysis

To the Stars

Every once in a while, especially at market extremes, it’s good to take a stake of the bigger picture. Now that the market, highly encouraged by the Fed, has baked in a rate cut for July (25bp or 50bp we shall see) a quick look at some yearly charts may provide some eye opening context as to where and when this rate cut is supposed to take place.

I’ve picked 6 well known stocks that may well now be considered stocks that never go down, that go up every single year without fail. Stocks that are heading toward the stars. Hyperbole on my part? You be the judge, but I think the charts speak for themselves. And yes, I’m posting linear charts to highlight how far we’ve gone…..just in 2019.

Don’t hate, appreciate 😉

Note I’m not just posting tech stocks, but some well known consumer stocks as well. All are a great companies that have delivered growth, but all are historically stretched, in many cases far above their yearly 5 EMAs, all represent technical reversion risk and all highlight how much this market has come to rely on a fantasy, a fantasy of perpetual rising asset prices in a world dogged by slow economic growth.

So the Fed wants to cut here, because the economy is in trouble? Oh kay.

$MSFT:

$AMZN:

$SBUX:

$MCD:

$KO:

$DIS:

 

Did I mention these stocks have been going up every year? A one way stairway to the stars? It’s almost like central planning. Go figure.

But sure, let’s cut rates. How absurd and reckless.


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Categories: Market Analysis

18 replies »

  1. Good context Sven…Want to even blow people’s minds more with MCD and KO? Chart against their sales over the last 5 years…Both down fairly dramatically…Hmmm….Share buybacks anyone?There’s a reason Buffett stopped reporting P/B for BRK-A…

  2. Pingback: To The Stars

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