Singular Research Director's Letter: November 2018
November 2018 Director’s Letter
The Correction Deepens
The market continued its sell off despite a couple strong rebound attempts. The China trade war fears and fed tightening continued to loom ominously over the market as investors de-risked and reduced exposure to equities.
Major market indices such as the S&P 500 in the DJIA struggled to stay in positive territory as the yield curve continue to flatten, triggering a recession fear sell-off as the three-year bond inverted above the five-year bond. Save a slightly tepid employment reports most economic series continued to display strength. But, as we know, the market is a forward-looking indicator, portending trouble ahead for 2019.
Top performers for November
Bottom performers for November
We initiated coverage with a buy on Olympic Steel, (ZEUS), an operator of U.S based metals service centers with a growing focus on higher value- added, engineered products. We are very constructive on long term prospects for this beneficiary of Trump’s steel tariffs.
We wish our clients and friends and their families a joyous holiday season and thank all our subscribers for their continued support.Singular Research Staff
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