May 17, 2017
In light of the Dow's more than 300-point drop this afternoon, I've recorded a special podcast to address today's stock market action and why I view today's dip as a good buying opportunity.
Overall, the stock market has used the bad press surrounding President Donald Trump as a reason to take a breather the past two days. Ever since Inauguration Day, there have been anonymous leaks that insinuate a lot of things about President Trump. Yet, there's no proof. The insinuation, though, is hurting the Trump administration.
Let me be clear…Trump is not going to get impeached because of the Republican majority. These leaks were mainly done to disrupt the Trump administration's agenda. The media has now overloaded the Trump administration with wave-after-wave of attacks and they're struggling to fight back.
As a result, the dollar is weak, the yield on the 10-year Treasury is falling and the S&P 500's dividend yield is back above 2%. Remember, when the gap between 10-year Treasury and S&P 500 yield narrows, it's a good buying opportunity. So I look for the stock market to bounce from here.
Of course, I expect our stocks to do even better. Strong earnings and sales, as well as positive analysts' revisions will continue to propel our stocks higher. We've had a stunning year so far, especially as positive first-quarter earnings and sales results drop-kicked many of our companies' shares higher. So I view today's dip as a great buying opportunity in our stocks that have run higher recently.
Click on the player above to listen to the podcast.