October 9 Post

Hi Again.


On Friday,10/5/18, the market (Dow) was down 250 points at one time. Why did that happen?Interest rose sharply in the bond market which made analysts fear that the Federal Reserve would do the same. A sudden, sharp rise in interest rates is what caused the market crash on 10/9/87. All market crashed took place in October. Be careful!

 A general malaise? Three stalwart NYSE stocks are trading at or near annual lows: GeneralElectric, General Mills, and General Motors. GE and GM set new lows just last week. The Car maker could bear the brunt of a trade war. General Mills is being crunched be a generational shift away from cold cereals and package foods. GE? There’s a menu of problems. Which will be first to rise from the mat? Perhaps General Mills, which Wells Fargo Securities analyst John Baumgartner rates outperform. Last week, General Mills reported solid fiscal first-quarter earnings but light revenues. Baumgartner trimmed his target price by $1 to $50, which still implies 16% upside. (Barron’s Market Week, 9/28/18)


Have a great month!