"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." - Warren Buffett
While the S&P (+0.85%) continued to reach new highs on strong performance amid potentially positive tax reform news out of Washington DC, CrowdThnk’s Top Forecasts turned in another robust performance, hitting a positive outcome on 3 of 4 high conviction predictions. Comcast (CMCSA, +3.44%), Southwest Airlines (LUV, +0.42%) and Nielsen Holdings (NLSN, +5.40%) all posted gains on the week with Nielsen leading the way after the company announced a new Netflix ratings service. With Nielsen’s new ratings service, networks will know how many people watch their shows on Netflix and how many people are watching their rivals’ shows, a major breakthrough for industry competitors such as Disney, NBC Universal and Warner Brothers, all of whom have signed up for the service. Meanwhile, Kimberly-Clark (KMB, -4.56%) struggled, falling due to a federal appeals court that has revived a lawsuit accusing Kimberly Clark of falsely advertising that four of its cleansing wipes were flushable. CrowdThnk’s performance this week follows last week’s accurate predictions on 5 of 6 Top Forecasts.
While Trump continues to deliberate between John Taylor, Jerome Powell and Janet Yellen to lead the next Federal Reserve Chairman post, the Fixed Income markets continued to sell off, placing higher market odds on more the more hawkish-leaning John Taylor or Jerome Powell to lead the Federal Reserve. Meanwhile, Yellen continues to provide a steady-as-she-goes alternative in which case consistency may be the best medicine for the market has she has overseen a long period of continuous record highs in the Stock Market – a fact Trump frequently asserts via his tweets. Current market odds place Powell around 55% odds with Yellen at 25% and Taylor around 20% probability of gaining the Fed Chairmanship. The President is expected to make his announcement within the coming days before leaving on a diplomatic trip to Asia in early November.
CrowdThnk quantifies equity market consensus positioning to provide clients with intelligent insights and actionable analytics. Using Crowdsourced data and Big Data Analytics, we accurately measure consensus market positioning and, with machine learning, we forecast future market direction for over 500 stocks. Our process is built to help financial market investors achieve higher returns and boost investment performance by Harnessing the Wisdom of Crowds.