Why the Economic Cycle May Have Bottomed and a Recession is Not Inevitable.
Why This Market is Similar to 1987 & 1998-1999.
This Stock Could Have a Meta-Like Resurgence.
John O’Connell, Chairman, CEO & CIO, Davis Rea Investment Counsel, and Don Ritchie, President, discuss why the economic cycle may have bottomed and a recession is far from a sure thing.
In fact, the economy may be entering a period of steady growth that is not too hot or too cold but just right.
Yes, the fabled Goldilocks economy that would provide the soft landing that many market players are forecasting and hoping for.
Or a “rolling expansion” as Ed Yardeni of Yardeni Research likes to call it.
From a stock market perspective, O’Connell likens today to periods in 1987 and 1998-99 when many deep pocketed investors were forced to capitulate their bearish positions resulting in a rush of cash into stocks accelerating already solid bull markets.
That scenario is how the S&P 500 could reach 5,000 by the end of the year, which would be more than a 10% gain from here.
O’Connell and Ritchie also discuss a stock that is lurking in their Davis Rea Equity Fund unloved and unwanted by many but possibly in the midst of a stealthy turnaround similar to how Meta proved the naysayers wrong with a monumental comeback and a stock gain of more than 240% off its bottom from last year.
Naturally, there’s no guarantee of that type of performance but this company has been on top before and is run by a master dealmaker and strategist who likely has some moves in store that we’ll be hearing about soon.
As always, please avail yourself of some smart commentary from O’Connell and Ritchie.
**
Related stories: Manager Who Called New Bull Market Still Bullish – Part One