A stock market correction is defined as a major index declining by 10% or more. A bear market starts when an index falls by 20% or more. However, once a market sinks below those levels, even if it bounces back above those lines, technically it isn't out of a correction or bear until it reaches a new all-time high. While the broad market S&P 500 (SNPINDEX: ^GSPC) came close to correction territory ...
A stock market correction is defined as a major index declining by 10% or more. A bear market starts when an index falls by 20% or more. However, once a market sinks below those levels, even if it bounces back above those lines, technically it isn't out of a correction or bear until it reaches a new all-time high. While the broad market S&P 500 (SNPINDEX: ^GSPC) came close to correction territory in recent days, only the Nasdaq Composite (NASDAQINDEX: ^IXIC) , the Nasdaq-100 , and the Dow Jones Industrial Average (DJINDICES: ^DJI) actually entered it, although all three are back above the 10% down level now. However, the market is notoriously volatile, and those indexes could easily drop below that once again if bad news arrives or investors become pessimistic. I think there are several compelling stocks to buy right now while the market is still in correction mode, and each of them is down by considerably more than the average stock. Continue reading
ARM stock surges 32% YTD as its chip architecture powers billions of devices, but a rich valuation and cyclical semiconductor demand cloud near-term outlook.
ARM stock surges 32% YTD as its chip architecture powers billions of devices, but a rich valuation and cyclical semiconductor demand cloud near-term outlook.
Eoneren/E+ via Getty Images Two indicators made by comparing buying of ProShares short versus long funds point to higher stock prices. The Theory of Contrary Opinion The theory of contrary opinion is a theory used by every great investor. It says when “too many” investors believe stock prices will rise, they usually fall. Likewise, when “too many” expect prices to drop, they tend to rise. The theo...
Eoneren/E+ via Getty Images Two indicators made by comparing buying of ProShares short versus long funds point to higher stock prices. The Theory of Contrary Opinion The theory of contrary opinion is a theory used by every great investor. It says when “too many” investors believe stock prices will rise, they usually fall. Likewise, when “too many” expect prices to drop, they tend to rise. The theory is easy to state but hard to apply. The key is knowing when there are “too many” investors expecting the same thing. Indicators That Measure Investor Expectations To apply the theory, you cannot guess when “too many” are expecting something; you need indicators to determine it. You also need historical data across many bull and bear markets to discover when an indicator has signaled “too many” in the past. For example, an indicator might show two bulls for every bear, which might seem like “too many” but it may require a ratio closer to four to one. We use 16 sentiment indicators at the Sentiment King. Some are well known; the two I’m going to show you here are unique to us. Short Selling Indicators It's insightful to compare how many investors are short selling stocks versus going long. We think the best way to measure this is through the ProShares fund family. They provide ETF's that are either long and short an index. They also have funds that use leverage. Their Ultra funds use 2X leverage while their UltraPro funds use 3X. We compare the amount of buying in the long and short ultra funds as well as buying an all the long and short UltraPro funds. The Ultra 2X Funds The bottom portion of the chart below is the ratio of the amount of buying in the Ultra 2X short funds to the amount of buying in the Ultra 2X long funds. The black line represents 1.0 where the buying is equal. This chart graphs the ratio of buying of the ProShares Ultra 2X short funds by the 2X long funds. Thirty six Ultra funds go into the calculation. These are the tickers of the long funds: BIB, DDM,...
Canadian flight simulator firm CAE Inc. is cutting 2% of its global workforce as part of a restructuring put forward by its new leader. Chief Executive Officer Matthew Bromberg , appointed in August with a mandate to double profits over the next three to four years, told employees in a letter that CAE must take “several necessary steps” to respond to market changes. Demand has softened in parts of...
Canadian flight simulator firm CAE Inc. is cutting 2% of its global workforce as part of a restructuring put forward by its new leader. Chief Executive Officer Matthew Bromberg , appointed in August with a mandate to double profits over the next three to four years, told employees in a letter that CAE must take “several necessary steps” to respond to market changes. Demand has softened in parts of its civil aviation business, but geopolitical instability is opening up opportunities for its defense and security unit. “These factors require us to better align our cost base, footprint, and capacity with current conditions,” Bromberg said in the letter seen by Bloomberg News. The cuts affect about 280 roles in total, spanning contracts, procurement and technical areas. An early retirement program will be offered in Canada. Montreal-based CAE has also begun reviewing operations at sites in Barcelona, Brussels and Stockholm. In the US, it previously announced that it will close its Orlando Lee Vista and Broken Arrow facilities. The global aviation industry has been hit by macroeconomic uncertainty and lower aircraft deliveries due to supply constraints. Plane groundings have also contributed to reducing pilot hiring and training activity, affecting demand for CAE’s services. Bromberg, who joined CAE from Northrop Grumman Corp. , launched a transformation plan to change CAE’s operations, shift capital allocation and boost performance. In February, the company said it will retire underperforming commercial airline simulators and identified several non-core assets, representing approximately 8% of revenue, that could be divested. In May, CAE will provide an update on its business strategy, along with longer-range financial targets.
Spencer Platt/Getty Images News Millions of dollars of trades on a ceasefire between the U.S. and Iran that flowed into the predictions market Polymarket have raised two main questions about the nascent platforms. Some well-timed trades by newly created anonymous accounts, paying off hundreds of thousands of dollars so far, raise the suspicion of insider trading. Another issue is how disputes over...
Spencer Platt/Getty Images News Millions of dollars of trades on a ceasefire between the U.S. and Iran that flowed into the predictions market Polymarket have raised two main questions about the nascent platforms. Some well-timed trades by newly created anonymous accounts, paying off hundreds of thousands of dollars so far, raise the suspicion of insider trading. Another issue is how disputes over the definitions of specific events are resolved. More than $170M of trades flowed through Polymarket ( POLYMARKET ) that bet on a ceasefire between the two countries, Bloomberg reported on Wednesday. Blockchain analytics firm Lookonchain pointed to three recently created accounts that received more than $480K in profits by betting on a ceasefire by April 7 and selling the positions at high prices, the news report said. When it's a yes/no event contract, how an event is defined is crucial. Some payoffs, though, are frozen in a dispute over whether the news on Tuesday night constitutes a ceasefire. For example, some traders said the ceasefire between the U.S. and Iran is actually a "temporary tactical stand-down," which wouldn't qualify under Polymarket's rules. Others say that the Iranian foreign minister's statement that Iran will halt “defensive operations” doesn't rule out offensive actions. Under the Polymarket procedures for resolving event disputes, anyone can propose how it should be resolved by posting a small amount of collateral. Other users can dispute the outcome. The matter then goes to a vote among holders of a crypto token called UMA. Traders debate the evidence in a public Discord chatroom, Bloomberg said. Uncovering insider trading is extremely difficult on a platform that allows anonymous trading. The platform doesn't conduct identity checks, but activity is visible on Polymarket's ( POLYMARKET ) website and in blockchain transactions. However, traders can use multiple accounts, making it challenging to discern how much any one trader has lost or profited....
hapabapa/iStock Editorial via Getty Images Since I last wrote about Eli Lilly and Company ( LLY ) in February, its price is down by 12% despite significant upside to the stock. There are certainly good reasons for the dip, but recent developments indicate that LLY is due an uptick now. Here, I first take a quick look at why the stock has been sluggish recently, followed by three key reasons why it...
hapabapa/iStock Editorial via Getty Images Since I last wrote about Eli Lilly and Company ( LLY ) in February, its price is down by 12% despite significant upside to the stock. There are certainly good reasons for the dip, but recent developments indicate that LLY is due an uptick now. Here, I first take a quick look at why the stock has been sluggish recently, followed by three key reasons why it can rise from here on. Why is the Eli Lilly stock falling? While it's tempting to chalk LLY's decline up to market weakness evident since the start of the US-Iran war, that's just a contributing factor. The stock started falling in early February itself (see chart below), following the release of the company's full year 2025 results. While investors were initially happy with the results, with 10% gains seen on the day of their release, the joy was short-lived. There were indeed concerns in the earnings release, and even otherwise. Their recap is as below: Impact of Zepbound price drop: Even as it remained exceptionally strong, Zepbound, the company's blockbuster weight loss treatment saw a revenue growth pullback in Q4 2025 to 123% compared to the full year 2025 growth of 175%, following a cut in its price. Growth cool-off forecast: The company's revenue growth forecast for 2026 at 25%, while also still strong, was a significant drop from the 43% increase seen in 2025. Acquisition drag: Eli Lilly's purchase of inflammation treatments developer Ventyx Biosciences ( VTYX ) in January, risked the company's earnings outlook even though it hadn't mentioned as much in the results. My estimates yielded a potential drag of $1.42 this year, even as the stock still continued to look attractive. Price Chart, YTD (Source: Seeking Alpha) 3 Positives for LLY However, recent developments support LLY's rise across investment time horizons. With Eli Lilly's margins and revenue growth are both at risk from price cuts to its products and rising competition in the weight loss market, the comp...
The underlying fundamentals of the economy are in a good place, though it is early to make judgments on that, according to San Francisco Federal Reserve Bank President and CEO Mary Daly. Daly was speaking at a moderated conversation about the economy, monetary policy, and more at an event hosted by the St. George Area Chamber of Commerce. "W hat most people want to know is whether they can trust t...
The underlying fundamentals of the economy are in a good place, though it is early to make judgments on that, according to San Francisco Federal Reserve Bank President and CEO Mary Daly. Daly was speaking at a moderated conversation about the economy, monetary policy, and more at an event hosted by the St. George Area Chamber of Commerce. "W hat most people want to know is whether they can trust the Federal Reserve," said the U.S. Federal Open Market Committee's alternate voting member. " Trust starts with representation and accountability ," she said. "To ensure accountability, Congress set the Fed's mission and goals. It also kept the right to regularly review the Fed's performance," she noted. "Although the system has evolved over time, these principles remain: regionalism, independence, and accountability." She highlighted the Fed's core responsibilities: managing payments, regulating and supervising banks, and conducting monetary policy. "So, what does our future hold?" asked the FOMC member. "As a longtime public servant, I know that public institutions are pillars of democracy. But to remain strong, they must evolve—ready to meet new challenges and allow for new possibilities." " The Federal Reserve is no exception," she said. Developing... Check back for updates. More on U.S. Economy Mortgage demand down overall, but purchase applications are gaining traction The Fed’s hands are tied – Renaissance Macro Research’s Neil Dutta
The Apple AI Strategy: Discipline Over Hype Authored by Michael Lebowtiz via RealInvestmentAdvice.com, While tech giants invest billions in AI, Apple executives are quietly sitting on their hands and a mountain of cash. Given the massive growth in AI investments, as shown in the graphs below, executives of leading companies at the forefront of AI development must be ecstatic about the prospect of ...
The Apple AI Strategy: Discipline Over Hype Authored by Michael Lebowtiz via RealInvestmentAdvice.com, While tech giants invest billions in AI, Apple executives are quietly sitting on their hands and a mountain of cash. Given the massive growth in AI investments, as shown in the graphs below, executives of leading companies at the forefront of AI development must be ecstatic about the prospect of AI significantly boosting their bottom lines. The puzzling question, however, is why Apple isn’t following suit. Or could they be taking a different approach to winning the AI arms race? Apple Avoids The AI Spending Boom Apple is one of the world’s most profitable companies. Over the last four quarters, they reported over $400 billion in annual revenue and nearly $100 billion of free cash flow. Furthermore, the company holds $65 billion in cash and cash equivalents and $77 billion in marketable securities. The bottom line is that Apple can easily self-fund AI innovation on a massive scale, as its competitors are doing. Yet it hasn’t. Rather than mimicking its peers, Apple appears content to let the AI landscape mature before committing significant capital. Restraint may seem like complacency or even negligence. However, Apple has a long and extremely successful history of deploying capital at the right time; when the profit outlook is clear, the technology is established, and the customer value proposition is well-defined. This approach may be frustrating for Apple shareholders in the short term, but history and the chart below, comparing Apple to the S&P 500, suggest it has served them extremely well. Apple’s Historical Playbook Apple has rarely been first to introduce a new product. It was not the first personal computer company, the first smartphone maker, or the first to launch wireless earbuds, smartwatches, or VR headsets. In nearly every case, Apple waited while other companies experimented and helped define the product and the market. Apple waited to understand what...
SDI Productions/E+ via Getty Images Foreign consumer staples stocks have delivered strong international equity returns in 2026, with several names posting gains that significantly outpace both their domestic U.S. peers and the broader global market. The outperformance is geographically concentrated, with Brazilian companies in particular standing out, three of the ten names on this list are Brazil...
SDI Productions/E+ via Getty Images Foreign consumer staples stocks have delivered strong international equity returns in 2026, with several names posting gains that significantly outpace both their domestic U.S. peers and the broader global market. The outperformance is geographically concentrated, with Brazilian companies in particular standing out, three of the ten names on this list are Brazilian, reflecting a combination of commodity strength, currency tailwinds, and improving domestic fundamentals. The following list ranks the top 10 foreign consumer staples stocks by year-to-date performance, drawing from markets across South America, Japan, Singapore, China, Turkey, and Hong Kong, spanning sub-sectors including agricultural products, personal care, packaged foods, brewing, and protein processing The list is topped by Adecoagro S.A. ( AGRO ), with an impressive YTD performance of 89.53%. Shiseido Company, Limited ( SSDOY ) and Ajinomoto Co., Inc. ( AJNMY ) follow as the next highest performers with gains of 48.36% and 37.60%, respectively. Sendas Distribuidora S.A. ( ASAIY ) and Wilmar International Limited ( WLMIY ) round out the top five with YTD performances of 28.93% and 28.26%. Other notable performers include WH Group Limited ( WHGLY ) and Anadolu Efes Biracilik ve Malt Sanayii Anonim Sirketi ( AEBZY ), both posting gains above 22%. Here is the list: Adecoagro S.A. ( AGRO ), YTD perf: 89.53% Shiseido Company, Limited ( SSDOY ), YTD perf: 48.36% Ajinomoto Co., Inc. ( AJNMY ), YTD perf: 37.60% Sendas Distribuidora S.A. ( ASAIY ), YTD perf: 28.93% Wilmar International Limited ( WLMIY ), YTD perf: 28.26% WH Group Limited ( WHGLY ), YTD perf: 23.19% Anadolu Efes Biracilik ve Malt Sanayii Anonim Sirketi ( AEBZY ), YTD perf: 22.19% JBS N.V. ( JBS ), YTD perf: 21.71% China Mengniu Dairy Company Limited ( CIADY ), YTD perf: 20.54% Ambev S.A. ( ABEV ), YTD perf: 20.24% More on iShares Global Consumer Staples ETF KXI: Consumer Staples Dashboard For March Roth Capi...
Wako Megumi/iStock via Getty Images Apple Inc. ( AAPL ) shares fell as much as 5% on Tuesday after a scathing report from Nikkei Asia that pointed to setbacks in the engineering test phase for the long-awaited foldable iPhone, which could result in a pushback of production and shipment schedules. The stock is down over 6% YTD, not making it the odd one out for big tech this year, with the S&P 500 ...
Wako Megumi/iStock via Getty Images Apple Inc. ( AAPL ) shares fell as much as 5% on Tuesday after a scathing report from Nikkei Asia that pointed to setbacks in the engineering test phase for the long-awaited foldable iPhone, which could result in a pushback of production and shipment schedules. The stock is down over 6% YTD, not making it the odd one out for big tech this year, with the S&P 500 ( SP500 ) down over 3% and the rest of the Mag7 in the red. Apple is moving the needle after staying static for far too long in a fast-paced smartphone market, and what we’re seeing are growing pains that we expect will pay off, supporting a long position in the stock. YCharts Will the Foldable phone happen? Markets a year ago may have shrugged off a headline like the one we saw on Tuesday, but this year is different. That’s thanks to none other than Apple itself, which hitched its bandwagon to the foldable phone by staggering the iPhone launch schedule starting with the iPhone 18 cycle. For the first time in over a decade, Apple decided to abandon the usual fall launch lineup and split it into two: introducing its premium lineup (including iPhone 18 Pro, iPhone 18 Pro Max, and foldable iPhone) in the fall, then following that with the standard release in Spring 2027. The scheduled change is indicative of more than just a timing switch-up; it also suggests that Apple is doing more. By the end of 2026, we could be looking at more than six distinct iPhone models, rather than the usual four we’ve gotten annually since 2020. The whole Apple revival strategy started last year with the introduction of the iPhone Air, and the foldable phone would be the next step. Management is trying to stretch out the buying window for its products without getting its models caught in internal competition. Tuesday’s news, however, put the new plan in flux. The report highlights engineering development issues with the foldable phone, and the new expectation is that the first shipments will be del...