The Goldman Guide

• Is there a correlation between how you approach March Madness and your bracket and your investment strategy?

• Big stocks hit a major technical mark on Friday. But, see why the rally is narrow and being led by the unlikeliest of groups. Some of these stocks are even hitting all-time highs.

• Small cap GARP and value offer big upside without the usual momentum and valuation risk. See what stocks fit this bill including growth stocks with very low historical valuations that have hit new highs.

We must be on the right track. We huddled on Friday and decided we would essentially take one segment of the market and compare/contrast prospects depending upon whether Clinton or Trump wins the whole she-bang. As if on cue, Barron’s cover story this week is: Clinton vs. Trump. Who Is Better for Investors?

So, we decided to answer the question and also focus on one segment.  The answer and the reasoning is in this week’s edition of The Goldman Guide. Plus, we provide a NYSE-listed stock pick in what may be the best performing sector in the near term.

Some market pundits think we are in a rally leading to higher stock prices, others think we are in a bear market rally. We believe they both missed the mark. See what’s really going on and where stocks are heading over the next few months.

After the big stock market reversals on the upside of the past few weeks, we may be at a crossroads again, direction and valuation-wise. I am hopeful that since the S&P 500 Index has risen an average of 1.5% each March for the past 15 years holds true. However, with more attention on the economy, and the fact the U.S. hasn’t grown GDP 3% or higher for the past 10 years (for the first time in nearly a century), it does not bode well. Plus, it just feels like we moved too much too fast.

This company has exceeded Wall Street consensus EPS projections by an average of 46%!

The most successful way to play the current, difficult market is via certain themes. For example, the 3 latest picks in last month’s 30-30 Report, are up an average of 8% versus the nearly 10% decline during the same period. (Subscribe now to ride the wave of these 3 picks and get our next issue to be released on Thursday.)

Why? Our theme was finding cheap stocks that are seasonal and typically beat estimates. In addition to following this theme we highlight a stock that may be riding the coattails of the Zika virus fears and recommend small stocks in two other sectors.

Worried the bottom could fall out of the market? So are we. In fact, we could drop another 10%. But, see why our confidence is greater that the worst may be over…

The good news is that we now know that we are nearing bottom on oil prices which bodes well for price and market stabilization, once growth fears can be allayed.  We may not be at the stock market bottom yet, but see why we are getting close.  Moreover, we are amassing a list of small stocks that could buck the current trends.

As we enter a new month, I think I speak for all of us when I say good riddance to January!  The good news is that since 2010, the S&P 500 Index has risen each February and with a kick-ass average return. We expect much of the same this go-around as well.

With a busy earnings and economic calendar, this week could be a Groundhog Day for stocks…and I don’t think the market will see its shadow…but there are a lot of negatives out there that will need time to shake out. In fact, there wasn’t a single IPO in the month of January! Go figure, and see some of the hurdles that remain ahead.

Feeling lucky? These oil stocks are worth a watch and maybe even an investment or two…

Check out how our big cap and small cap picks in January performed...you will be surprised…

For those of you that like me had to contend with digging out of nearly 30 inches of snow, I hope all is well. With the snow and the horrible market, could this year start off any worse?  We provide insights, data, and info on a variety of topics in this issue. However, in our most important topics, we discuss:

• Where stocks are headed and why.
• Reasons to be cautious now but optimistic in the spring and beyond.
• A microcap stock that is up for the year and could rise 25% from here.

I had a lot of fun writing this week’s edition of The Goldman Guide and you will get a lot out of this issue too! Here are the highlights:

• We provide 3 reasons why stocks will go up---and soon
• If you like data and tables on P/Es, growth rates, etc. you will see what sectors look really cheap and should be under accumulation
• Our take on the Super Bowl (an updated and clearer version than the famous indicator) will show you who to root for and why 2016 could be strong for stocks
• I identify what the bottom for stocks may be in the worst case and most likely scenarios
• See what stocks you should own now including stocks we profiled last week that more than held their own against the onslaught

It is a new year and that means new ideas. In this week’s issue of The Goldman Guide we identify new themes that will drive stocks in the near term and stocks to play that leverage these themes such as this week’s CES show. Plus, for those investors seeking modest returns, we outline the most efficient and best way to engage in the Dogs of the Dow investment strategy which entails investing in the highest yielding stocks in the Dow Jones.  (Hint: There is a low-priced ETF/ETN.)

Plus…

…last year, our small cap pick of the year, Orbotech (NASDAQ – ORBK), rose 39% for the year. For 2016, we not only identify our new small cap pick of the year but also a bottom fishing candidate trading under $2 that could jump 60% in 2016. The chart looks terrible and it dropped by 56% last year but oftentimes this year’s biggest winners are the worst performers of the year before. This stock seems primed to fit that bill.