Brian Acker’s Top Picks: May 26, 2022

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Brian Acker, President, CEO and Chief Investment Strategist at Acker Finley

FOCUS: North American Large Cap Equities


MARKET OUTLOOK:

Since my last appearance on April 12, the S&P 500 index has either broken or had a negative transit of what we call EBV+5 or 4,208 on the S&P 500. The May 23 close of the same index, S&P 500 of 3,974, tells us the stock markets in the United States have entered what we all call a “bear market”. Our EBV+5 calculation shifts from what “technical analysts” call “support (low)” to “resistance (high)” as the market moves from bullish to bearish. So using Monday’s close of the S&P 500 creates a zone that has a 3% upside and a 3048 downside – EBV+4 or a 28% drop.

With inflation “hot” at 7-9% per year, the Federal Reserve has become “hawkish”, with ever-increasing interest rate hikes and what is known as “quantitative tightening” of the balance sheet of the fed. This “hawkish” approach and the harsh rhetoric about further hikes in short-term interest rates have caused the prices of some assets to experience jaw-dropping valuation reductions. Crypto assets are an area that has caused a lot of pain for true believers who see a futuristic use of money on blockchain and distributed ledgers. Also, “historical” stocks have had painful days where “history” doesn’t look so bright when the Fed takes away the “punch bowl”.

As spring turns into summer, only the Fed knows when enough pain is enough to slow inflation significantly, as the Fed may consider “dovish” language and perhaps return to higher interest rates down and into a “quantitative easing” mode that produced an increase in asset prices like in 2021.

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TOP CHOICES:

Brian Acker’s Top Picks

Brian Acker, President, CEO and Chief Investment Strategist at Acker Finley, discusses his top picks: Walmart, Intel and Johnson & Johnson.

Walmart (WMT NYSE)

Last purchase July 15, 2021 at $141.72

Intel (INTCNASD)

Last purchase on June 15, 2021 at $58.24

Johnson & Johnson (JNJ YSE)

Last purchase November 11, 2021 at $163.52

PAST CHOICES: May 8, 2020

Brian Acker’s Past Picks

Brian Acker, President, CEO and Chief Investment Strategist at Acker Finley, discusses his top picks: Oracle, Merck & Co. and Bank of America.

Oracle (ORCL NYSE)

  • So: $53.57
  • Now: $70.47
  • Return: 32%
  • Total return: 36%

Merck & Co. (MRK NYSE)

  • So: $76.40
  • Now: $93.65
  • Return: 29%
  • Total return: 36%

Bank of America (BAC NYSE)

  • So: $23.57
  • Now: $36.55
  • Return: 55%
  • Total return: 62%

Average total return: 45%











ORC NYSE Yes Yes Yes
MRK NYSE Yes Yes Yes
BAC NYSE Yes Yes Yes
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