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In this episode of Stocks In Translation, Yahoo Finance’s markets and data editor Jared Blikre and host Madison Mills welcome Kevin Gordon, director and senior investment strategist at Charles Schwab, to the podcast.
The team delves into market breadth — how many stocks participate in a given move in an index or stock exchange— against the backdrop of an election a few weeks away and the markets seemingly shrugging their shoulders.
Gordon acknowledges the amount of change, “There has been a lot of churn, but it just hasn’t yet manifested… I would chalk that up to relatively strong breadth and participation because you look at the S&P [500] in particular… There’s been really this sort of solid band of, you know, around 65 to 80% of stocks trading above their 200-day moving average for the most part for the entire year.”
The episode also dives into the first 204 trading days, with the S&P 500 (^GSPC) having ‘its best year since 2013.’ “It is interesting, especially because in so many ways, from a valuation standpoint, we do find ourselves in similar territory to periods like 2021 or periods like the late 1990s,” said Gordon.
Gordon also expands on when he’s increasingly interested in bonds, even as an equities person. “I’m a fan of bonds,” Gordon continues. “There’s so much more opportunity now in the income space that so many investors either haven’t seen for a long time or so many investors just haven’t seen ever… It’s also now more competitive with what you’re earning in the equity market. And from an earnings yield perspective, that spread is closed.”
He addes, “If you’re looking for … less volatility in terms of your income that you’re generating on an annual basis, um, it’s not, it’s not bad to look at the fixed income universe.”
Twice a week, Stocks In Translation cuts through the market mayhem, noisy numbers and hyperbole to give you the information you need to make the right trade for your portfolio. You can find more episodes here, or watch on your favorite streaming service.
This post was written by John Tejada.