A key consumer sentiment indicator showed a drop in optimism for August, and we could see increased volatility in coming months. With so many factors affecting the market and key economic data coming out this week, it’s tricky to find good opportunities. But I’ve identified one stock with upside potential in the current housing environment — and more in Monday’s stock market recap.
But first…
Stock Market Recap
In Monday’s stock market recap, global stocks are mostly lower this morning as investors worry about rising COVID-19 cases and a drop in consumer optimism.
We have another big week for Federal Reserve data… The retail sales report is scheduled for Tuesday, housing starts and permits data for Wednesday, and the Philadelphia Fed Manufacturing Index for Thursday. Retail sales impact the economy in a big way because they make up two-thirds of the gross domestic product.
I like the Health Care and Real Estate sectors right now. I expect a lot of choppiness in most of the other sectors. I also like tech stocks that aren’t involved in selling to the consumer. Some tech stocks, like Apple Inc. (Nasdaq: AAPL) and Amazon.com Inc. (Nasdaq: AMZN), are split between the Consumer Discretionary and tech sectors. Consumer discretionary stocks are exposed to retail sales and could see increased pressure in the near term.
The University of Michigan consumer sentiment index experienced its largest decline since the start of the pandemic from July to August. Consumer sentiment is shifting and could join rising COVID-19 cases and potential Fed stimulus tapering in affecting the economic rebound.
Roger’s Radar: Top Pick to Start Off the Week
Rising home prices have increased demand for multi-family residential units. I’ve identified one stock that would benefit from this shift. It’s already shown impressive growth with a one-year return of 107.21%, and earnings-per-share growth of 288.57% versus the previous year!
In Monday’s video, you’ll learn which Fed reports could move markets this week… whether volatility is set to spike and why… a complete S&P 500 sector analysis… a global market update… and the top stock for Monday.
P.S. Add This Systematic Strategy
The current market environment has made it harder than ever to pick promising stocks.
Large caps, inflation, interest rates, and potential government restrictions are all pulling at the market. So hot stocks aren’t as easy to find as last summer.
The old “buy and hold” strategy may not be the best approach right now…
Investors need a more systematic system… a way to find out what level to get in and out of the stock and what their profit target should be.
Well folks, I have a strategy that does just that. It accomplishes this by using what I call a “Sniper Line.”
We were able to make 94.1% on WWW just this past week!
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.
