The world is slowly starting to return to normal. Here in Florida, we are in Phase 1 of reopening. That means we have salons, restaurants, gyms and libraries open at a 50% capacity.
In fact, all 50 states are reopening or preparing to in the next two months.
With these businesses opening back up, the weekly jobless claims numbers continue to dwindle. As you can see from the chart below, the number is down for the eighth week in a row.
(Source: Bureau of Labor Statistics.)
(Click here to view larger image.)
So what does that mean for the market?
I don’t see anyone particularly enthusiastic about the rally so far. That’s good. Stock markets need plenty of skeptical investors — a proverbial “wall of worry” — in order to climb higher.
But as we hit the summer months, it wouldn’t surprise me to see a market correction, too.
Many of the biggest stocks in the S&P 500 are highly overvalued. For instance, Microsoft is a fine company. But the stock is trading at its highest valuation level since the dot-com boom and bust, 20 years ago.
So a market correction would be a healthy development. Fund managers will rotate into stocks like ours — growing fast but still undervalued. A sell-off would also set the stage for a stronger run to the stock market’s all-time highs in coming months. So that would be good news for our portfolio.
As for today’s update, I discuss:
- Our recent trade on an 80% gain in Kornit Digital (Nasdaq: KRNT).
- Campbell Soup (NYSE: CPB) offers us a clue on the possibility of a market correction.
- Two of our 10-Bagger Collection positions are now buys.
To watch the 10-minute webinar, click on the image below.
(Click here to watch the webinar.)
Click here to read a transcript.
I’ll be back with you next week! In the meantime, check out our resources if you haven’t already. We have a wealth of great information online, including our trading manual, special reports, FAQ and more!
Best of Good Buys,
Jeff Yastine
Editor, Total Wealth Insider
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totalwealthinsider@banyanhill.com