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In this episode of Stocks In Translation, Yahoo Finance Markets and Data Editor Jared Blikre and host Madison Mills welcome Kevin Gordon, Director and Senior Investment Strategist at Charles Schwab to the podcast.
With the election just weeks away and the market seemingly shrugging its shoulders, researchers are looking at market breadth, or how many stocks participate in a particular move in an index or stock exchange. I’m digging into what’s going on.
Gordon acknowledges the magnitude of the change, saying, “There’s been a lot of movement, but it hasn’t shown up yet…If you look at the S&P (500) in particular, I’d say there’s been relatively large breadth and participation. You know…about 65 to 80 percent of the stocks are trading above their 200-day moving average for much of the year, this kind of solid band.”
This episode also covers the first 204 trading days of the S&P 500 (^GSPC)’s “best year since 2013.” “This is interesting, especially because it shows us that in so many ways from a valuation perspective we’re in similar territory to a period like 2021 and a period like the late 1990s,” Gordon said.
Gordon expands on the growing interest in fixed income, even among equity players. “I’m a fan of fixed income,” Gordon continues. “There are so many opportunities now in the income space that many investors haven’t seen in a long time or have ever seen. It’s also becoming more competitive relative to the amount that is in the stock market. And from an earnings yield standpoint, that spread is closing.”
He added: “If you’re looking for less volatility in the income you’re generating on an annual basis, well, no, there’s nothing wrong with looking at the fixed income world.” Ta.
Twice a week, Stocks in Translation cuts through the market chaos, loud numbers, and hyperbole to give you the information you need to make the right trades for your portfolio. Find more episodes here or watch on your favorite streaming service.
This post was written by John Tejada.
