No it doesn’t. This doesn’t have to affect the stock market at all. Will there be a minor retrenchment? Maybe. Only because it always does that and never doesn’t do it. No bear market. Anything less is not a trend change. A trend change because of not enough once in a generation inflation? C’mon.
If this has any effect at all on the market it will be because the few thousand people who actually own it will decide “Hey let’s…”
That was the source of most of the inflation in the first place.
On my list of 68 stocks I track, yesterday EIGHT made new all time highs!
AAPL Apple Inc. 193.99
LSCC Lattice Semiconductor Corp. 96.45
ODFL Old Dominion Freight Line, Inc. 383.28
SPSC SPS Commerce, Inc. 193.73
APPF AppFolio, Inc. 193.16
PSTG Pure Storage, Inc. 38.51
SMCI Super Micro Computer, Inc. 302.05
AEHR Aehr Test Systems 52.17
A contrarian view at SeekingAlpha but the comments tend to disagree:
Finally, The U.S. Markets Are Making Sense Again!
Granted, the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio outperformed the market-cap weighted market last year, but things are finally making sense again. With the risk-free-rate yielding more than most U.S. equities, dividend growth and most income strategies are now under pressure. This makes perfect sense to us. The strongest U.S. companies are now back on track with Apple (AAPL), Microsoft (MSFT), and the areas of big cap tech and large cap growth leading the way so far in 2023. This makes perfect sense to us.
2023 is looking pretty good for the covered call strategy.
LSCC Lattice Semiconductor Corp. 96.79
ODFL Old Dominion Freight Line, Inc. 394.20
SPSC SPS Commerce, Inc. 194.81
APPF AppFolio, Inc. 193.92
PSTG Pure Storage, Inc. 38.60
SMCI Super Micro Computer, Inc. 318.40
MCHP Microchip Technology Inc. 93.34
Volatility happens! Got whacked good yesterday, Tesla down 9.74%.
Funny thing, one of my deep ITM call options was assigned on Wednesday which cut days to expiration by nine days which improves the yield. Another is expiring today which means I might be able to sell more calls on Monday.