Buckingham at NYSE, Econ Update, Sentiment and More Stock News

The Prudent Speculator Weekly Commentary is expertly curated every week as a valuable resource for stock market news, investing tips, business insights, and economic trends as it relates to value stock investing. In this week’s Market Commentary, we discuss Federal Reserve, AAII Sentiment, Valuations and more Stock News. We also include a short preview of our specific stock picks for the week, the entire list is available only to our community of loyal subscribers.

EXECUTIVE SUMMARY

Newsletter Trades – 10 Buys Across 4 Portfolios

Buckingham at the NYSE – Schwab Network Interview

Interview Notes – 20 Undervalued Stocks, Perspective: Valuations, Volatility, Fed & Inflation

Econ News – Mixed Numbers, GDP Growth the Forecast

Sentiment – AAII Still Pessimistic…a Contrarian Buy Signal

Stock News – Updates on Seven Stocks Across Four Sectors

Market Review

Your Editor was in Manhattan on Friday and stopped by the New York Stock Exchange for a 9-minute chat on the markets with Sam Vadas of the Schwab Network. That interview is available here…

‘Get Granular’ to Find Value: BMY, MCK, WHR & More | The Watch List| Schwab Network

…while I share the notes provided with the producers the day ahead of the appearance here…

No doubt, all eyes will be on the jobs report, with short-term-oriented folks hoping for a not-too-hot, not-too-cold reading. Of course, as long-term-oriented investors, we would look to take advantage of any near-term negative reaction in stocks by picking up undervalued names like those listed in the table below that I put together on Wednesday evening. We have long believed that it is a market of stocks and not simply a stock market, and this year’s rising tide has not lifted all boats.

With many fretting about the multiples on the capitalization-weighted major market averages,…

…we like that our portfolios boast inexpensive price metrics and generous dividend yields,…

…while we note that those nervous about a repeat of the bursting of the Tech Bubble in 2000 should consider what happened in the years following to the kind of stocks we have long favored.

Indeed, like the turtle in the Tortoise and the Hare, Value strategies won the returns race following the Tech Wreck, and returns have been solid over the past two decades as well.

While we always are braced for downside volatility as we have endured 39 corrections of 10% or more since 1977, and have not missed any of the 40 far-more-lucrative advances of 10% or more over that same span,…

…and the September/October period historically has been the weakest of the year, on average,…

…we remain optimistic about the long-term prospects for equities, as corporate profits are projected to continue to grow,…

…and stocks have moved higher, on average, whether the Federal Reserve is easing or tightening monetary policy,…

…or whether inflation is rising or falling.

True, downturns can be disconcerting, but they always have been overcome in the fullness of time,…

…and the odds show that the longer stocks are held the less the chance of an unfavorable outcome.

That big labor report that came out Friday morning was more cold than hot as there were only 22,000 new jobs created during August, below expectations of 75,000 and down from a revised 79,000 in July,…

…while the unemployment rate ticked up to 4.3% versus 4.2% the month prior,…

…with the numbers triggering a sizable rally in the bond market which sent interest rates lower…a positive for stocks…and increased the odds that the Federal Reserve will reduce interest rates sooner as opposed to later and at a faster pace.

While lower interest rates generally increase the appeal of equities, all else equal, the concern for investors is the health of the overcall economy, but the most recent, albeit pre-jobs report, estimate from the Atlanta Fed for Q3 real (inflation-adjusted) GDP growth stood at a solid 3.0%,…

…with that figure reflecting a weaker-than-expected ISM PMI report on the health of the factory sector,…

…and a stronger-than-expected ISM NMI report on the health of the larger services sector.

While we realize that downturns an even Bear Markets are part of the long-term lucrative landscape for equities,…

…we continue to see no reason to alter our enthusiasm for stocks over the long run, especially as the mood on Main Street remain pessimistic,…

…and 38+ years of data from the American Association of Individual Investors very much supports being greedy when others are fearful.

Stock News – Updates on seven stocks across four different sectors

Keeping in mind that all stocks are rated as a “Buy” until such time as they are a “Sell,” a listing of all current recommendations is available for download via the following link: https://theprudentspeculator.com/dashboard/. We also offer the reminder that any sales we make for our newsletter strategies are announced via our Sales Alerts. Jason Clark, Chris Quigley and Zack Tart take a look at earnings reports and other market-moving news of note out last week for more than a few of our recommendations.