Joel Elconin – As The S&P 500 Approaches 5000 Has A New General Equities Supercycle Kicked Off?
Joel Elconin, Co-Host of the Benzinga PreMarket Prep Show and Editor of the PreMarket Prep website, joins us to review the continued breakout higher in the US markets. With the S&P 500 index approaching the round $5,000 level, Joel points out that it’s likely a new general equity Supercycle has kicked off. Investors have shifted from looking at “bad news is good news,” with regards to what the Fed monetary policy loosening response may begin, to now “good news is good news” highlighting the strength of the economy, and that the recession has been averted.
There has been a continued flood of buying into tech stocks, AI stocks, and semiconductor stocks which has lifted the major stock indexes to new highs. This is the main theme to keep riding from Joel’s perspective. He feels too much concern is made about the narrowing market breadth, and that laggards like the (IWM) Russell 2000 index or the energy sector or weakness in financials will simply remain “laggards” and mostly dead money. Instead, his recommendation is to keep pressing the trends in the “hotrods” and sector leaders that are still working. We further dissect the Q4 earnings reports and pricing trends in a number of individual stocks, highlighting the many areas that are working well in these markets.