by winston » Wed Feb 13, 2019 10:04 am
Domestic US vs Global Exposure
by Louis Navellier
I should also add that the fourth quarter will likely represent "peak earnings" for many companies.
Due to more difficult year-over-year comparisons, earnings momentum will decelerate in 2019. We're already seeing this play out in several S&P 500 companies' first-quarter guidance: 33 companies have forecast negative earnings growth.
So, I still expect the stock market to become increasingly narrow in the upcoming months, and institutional money will be chasing fewer stocks. In this environment, many investors will reallocate their funds to more domestic companies with superior fundamentals.
Given that small- and mid-cap stocks are more domestic in nature, I look for money to pour into this arena.
The bottom line: Institutional investors are moving away from multinational companies and refocusing on small- and mid-cap stocks that are less likely to be negatively impacted by the strong U.S. dollar and weak global growth.
Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"