Singular Research Director's Letter: October 2018

October 2018 Director’s Letter

 Lowlights:  a triumvirate. of negatives overcomes bull market

Nowhere to hide from the claw of the bear, or the wrath of the Fed. The new Fed chief  Powell indicated that the Fed plans on more hikes this year and next, a hawkish tone that spooked investors in October. The sell -off was deep and swift knocking most major indices approximately 10%, and individually issues 20-30%. The FAANG was hit hard for a 20% drop  

Investors are concerned about trade wars and declining earnings momentum as S&P500eps growth is expected to taper from 15% to 5% over the next two quarters. Meanwhile, GDP continues to steam ahead  at 3.5% GDP growth in Q3. 

OUR INTERNAL MARKET INDICATORS ARE MILDLY BULLISH 

Singular best & worst in Oct.

Underscoring the bearish environment in October the best/worst list dominated by negative returns.

Thank you for support.of our quest to discover forgotten,forlorned and mispriced, undercovered small and micro cap equities. We look forward to finding much more attractively valued coverage candidates in the months ahead. Happy holidays !

Singular Research Staff…

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