To say it's been a tough year in tech investing would be an understatement. We started 2016 dealing with the asinine rate hike by the geniuses at the Federal Reserve at the end of 2015, which led to a global market meltdown with technology mega-caps taking the brunt of investor wrath, which is par for the course.
Having just recovered from that Fed indices madness and a few months of a slow grind higher, we had the huge Brexit-related mayhem, which again took our markets down even harder than it did the Financial Times Stock Exchange. This made our investors look pretty much look like nervous nellies given the fact that British traders took the massively surprising vote to leave the European Union pretty much in stride.
Once global markets, including tech stocks big and small, recovered from that, we had the surprising win by Donald Trump, which yet again led to a selloff in technology as investors thought he would end up nuking Silicon Valley due to the fact that most tech CEOs did not support/fund his campaign. Despite the Trump tech summit a few weeks ago, mega-cap tech stocks still seem to be untouchable given that they did not see a Thanksgiving rally, nor a Christmas rally, nor a year-end bounce.
Talk about redheaded stepchildren, no? More than likely, the rotation out of tech is almost over since, with earnings season just around the corner, tech should be the go-to sector in terms of earnings with the few usual laggards.
Next week we will have CES kicking off on Wednesday and tech companies will be showcasing their best and cutting-edge products at the show. Should be pretty interesting and could provide a catalyst for the return of technology investments.
Also, next week will bring the Federal Reserve back into the picture with Charles Evans and Jeffrey Lacker scheduled to speak on Friday at 11:45 a.m. ET and 1 p.m. ET, respectively.
On the domestic economic data front, the New Year brings us a full plate, starting with manufacturing PMI and ISM manufacturing on Monday and Tuesday; FOMC minutes on Wednesday; initial jobless claims, services PMI and ISM non-manufacturing PMI on Thursday; and of course nonfarms payroll data for December on Friday.
In international economic data, we have the usual German, and British manufacturing PMI, eurozone CPI and retail sales next week.
On the earnings front, we have nothing in techland but we do have Sonic (SONC) , Monsanto (MON) and Walgreens (WBA) among others reporting earnings next week. (Walgreens is part of TheStreet's Action Alerts PLUS portfolio.)
Finally, I will also have my 2016 in review article and also my predictions for 2017 out next week. (I know, be still my beating heart...)
On the lighter side:
The stock market is the only place where every time someone sells, on the other side someone buys and both sides walk away thinking they are geniuses (by yours truly).
With that, I wish each and every one of you a safe and joyful weekend with your loved ones.
Happy New Year and all the success in the world to each and every one of our subscribers/readers/TSC management/editors/staff/Jim C./Poppa Kass/Rev/all my other colleagues on the site.
May all your trades always be profitable in 2017 and beyond.