Market Wrap-Up for Sept.23 (GLD, SLV, NKE, MS, VFC,FCX, more)


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The market was able to see a bit of a minor bounce today, but the volume on these up days remains lukewarm at best. This is not the type of environment you want to be making any "all-in" bets.

Traders spent the day flocking to what were the most oversold areas of the market, hence we saw commodity stocks pushing higher. Giants like Freeport McMoran ( FCX ) and BHP Billiton ( BHP ) were able to catch a slight bid, but the long-term charts on these names have been very damaged since the beginning of the year. Commodity plays are notorious for slashing their dividend payouts in the blink of an eye, which is why we've avoided the space for the most part.

Financials were also another area some investors were hoping to catch a bounce in today. Morgan Stanley ( MS ) could be a short-term tell to watch if those beleaguered stocks can stabilize. Again, the rallies in the financials have come on lighter volume for the most part, so proceed with caution if you are considering the sector. We are still bearish on most financial names here.

Elsewhere in the markets, Nike ( NKE ) shares were up nicely after the company trounced earnings expectations. V.F. Corp ( VFC ) was also up big, following a Wall Street analyst upgrade. In contrast, it was a rough day for gold-mining stocks like Royal Gold ( RGLD ) and Newmont Mining ( NEM ) as gold prices plummeted through key technical levels. Gold prices had their biggest one-day fall since 2006 and silver ( SLV ) prices did no better, seeing the biggest one-day drop since 1984.

New Dividend Stock Recommendation Today

As the market continues to try and find its footing, we remain focused on our Best Dividend Stocks List to make sure we have only the best current investment opportunities listed as we find them. Speaking of which, we upgraded a big name back on to our recommended list earlier today, so be sure to check out our post detailing the upgrade if you haven't already.

The Phenomenon of Everyone Owning the Same Hot Investment

I'm sure most of you saw my multiple warnings about Gold ( GLD ) in the short-term this week. All along gold's meteoric rise, I've maintained that gold is merely a trade - not a viable long-term investment. The yellow metal's big decline this month further solidifies my view.

To that point, it's always interesting (and sometimes dangerous) when all members of a group seem to love the exact same thing. You see this phenomenon take hold in the sports world when a group of fans gather. Good plays are often described as amazing and bad performances are masked with "good effort though." I'd imagine the same thing has been happening with investors when the subject of gold is brought up.

The problem when you have an entire group lovesick over a particular investment is that the upside becomes more and more limited. Just take a look at the real estate market in the middle of last decade. We all know how that party ended.

The old adage "If everyone already owns it, who's left to buy?" is one of my favorites. Over in tech land, Apple ( AAPL ) has the mojo going in a big way these days. It's difficult to find an analyst or investor that isn't bullish on Apple. Inevitably, however, there will be a retrenchment of some sort. It happened to all of the best tech investments of the 90′s: AOL, Cisco, Microsoft, EMC, Dell. Who can forget the thrill of hearing a new version of Microsoft Windows was coming out and what that meant to the PC investment cycle? And how about the mania surrounding AOL 3.0, 4.0, 5.0, and so on?

Over time, consumers slowly begin to realize that newer versions these companies' products aren't worth the price of an upgrade and decide to pass. It happens! My kids love Apple products, but at some point they will hear what every kid dreads to hear from their parents: "What you have already is good enough."

Now Apple is loaded with cash, and they could perhaps get into different businesses to keep the franchise firing on all cylinders. Or, it's possible they can continue to innovate new products ad infinitum , but that's never a sure bet, as many prototype products never make it pass the design or testing stages.

All in all, Apple is debt-free and has a giant cash hoard last reported at $65.8 billion), so I would certainly not bet against them. But I hope I've made my my point about how market leadership goes, particularly in the tech space. No one stays on top forever, and building a moat large enough to keep competitors out in the tech world has proven extremely difficult.

Clearly, long-term investors need to be careful when euphoria when investing euphoria around a certain commodity or company reaches a fever pitch.

At, we'll be certain to explore all the investment angles as we help you along your path to building wealth. Making a habit of buying income-producing assets like quality dividend-paying stocks is a great way to achieve great results.

A Look to Next Week and a Weekend Preview

Looking ahead to next week, quarterly earnings will be fairly light. We will, however, see results from the likes of Accenture ( ACN ), Walgreen Co. ( WAG ), and a few others of note.

Be sure to catch up with our latest watchlist updates this weekend on Premium , including reports on earnings/story stocks, analyst upgrades/downgrades, dividend ETFs, and much more. And as always, you can view our current recommendations on our industry-leading Best Dividend Stocks List .

Thanks for reading, and I'll see this weekend! P.S. Please pass this e-mail on to someone you think can use some financial motivation as well as being kept in the financial news loop that could affect them.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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