Shark Tank shark Kevin O’Leary, an attendee at the Milken Institute’s conference in California this week
provided a report to CNBC. The conference which is held annually is attended by politicians, the world’s
captains of industry and most prestigious institutional investors. U.S. Treasury Secretary Steven
Mnuchin was an attendee.
While at the conference Mr. O’Leary conducted his own informal survey of professional and institutional
investors who were in attendance. His question to them was “had their investment strategy changed
for the rest of 2018 due to the increase in volatility”? What he learned from a majority of the investors
is that they had resigned themselves that the major indices had peaked for the year in January 2018. He
also learned that they were favoring dividend paying stocks. The price action of Microsoft shares for the
first four months of 2018 in the chart below supports the results of his informal survey. Microsoft
shares which pay a 1.8% dividend are within $3 of their 2018, $97.90 high.
The investors gravitating to defensive stocks is yet another reason why the indices have seen their highs for the 2009 secular bull market. See “BULL DEAD, BEAR DOB 01/31/18: Expect Stock Market Decline of at Least 50%”.
More information about secular bulls and bears and why they last for a minimum of eight years is available at ProftFromTheCrash.com. The video below provides details about the secular bull and secular bear markets that have occurred since 1802.
To insure access to all of my articles, reports and alerts covering the new bear market which was born on January 31, 2018 (see my February 6, article “Bull DEAD, BEAR DOB 1/31/18: Expect Stock Market Decline of at Least 50%”) sign up for alerts at ProfitFromTheCrash.com.
Disclaimer. Mr. Markowski’s predictions are frequently ahead of the curve. The September 2007 predictions that appeared in his EquitiesMagazine.com column stated that share-price collapses of the five major brokers, including Lehman and Bear Stearns, were imminent. While accurate, they proved to be premature. For this reason he had to advise readers to get out a second time in his January 2008 column entitled “Brokerages and the Sub-Prime Crash”. His third and final warning to get out, and stay out, occurred in October of 2008 after Lehman had filed for bankruptcy. In that article “The Carnage for Financials Isn’t Over” he reiterated that share prices for Goldman and Morgan Stanley were too high. By the end of November 2008, the share prices of both had fallen by an additional 60% and 70%, respectively — new all-time lows.