If I asked you what was going on in the markets in January 2017, I’d bet that most folks wouldn’t recall anything in particular that really stood out. After all, the S&P 500 was climbing to new highs on a near daily basis, and volatility was near all-time lows. Ho-hum. In other events, you’d probably recall that it had only been a couple of months since President Trump’s surprise election, and that January was the month of his inauguration. But something else happened during that period. Something that can be used as a valuable investing lesson. From Trump’s election in… Read More
If I asked you what was going on in the markets in January 2017, I’d bet that most folks wouldn’t recall anything in particular that really stood out. After all, the S&P 500 was climbing to new highs on a near daily basis, and volatility was near all-time lows. Ho-hum. In other events, you’d probably recall that it had only been a couple of months since President Trump’s surprise election, and that January was the month of his inauguration. But something else happened during that period. Something that can be used as a valuable investing lesson. From Trump’s election in November 2016 to the end of January in 2017, the S&P 500 was up more than 9%. Nearly every stock was climbing… that is, except for two of my Top Stock Advisor holdings: Perhaps seeing the names of these companies begins to spark some memories. In short, clothing retailer PVH (NYSE: PVH) and beverage company Constellation Brands (NYSE: STZ) were taking heat over the rhetoric of a possible “Border Tax” — a tax on goods made overseas and imported and sold in the United States. At the time, there was a lot of concern regarding these two companies…… Read More