MARKETWATCH 1:31 PM ET 10/21/14 Symbol Last Price Change IYR 73.055down +0.635 (+0.88%) QUOTES AS OF 01:33:31 PM ET 10/21/2014
It's been a wild ride for investors over the past two weeks, and it may not be over.
But whether the stock market rises or falls, Art Nunes sees two areas of opportunity: utility companies and real- estate investment trusts.
Nunes is the chief investment officer at Dynamic Investing Group, a unit of Northwest Asset Management. He manages over $70 million for clients.
In August, Nunes warned that small-cap stocks were likely to suffer the biggest declines in a coming market correction. The chart above shows that the 20-day and 50-day moving averages for the Russell 2000 Index (RUT) have moved below the 200-day moving average, and that the index is still below all three averages.
Illustrating the pain for small caps, the iShares Russell 2000 Index ETF (IWM) reached a peak of just under $121 a share July 1 and fell to a 52-week low of about $104 on Oct. 15.
The small-cap action pointed the way forward, but the S&P 500 Index (SPX) didn't hit its intraday record of 2,019 points until Sept. 19, and was down 10% from that level when it fell to an intraday low of 1,821 last Wednesday.
The S&P 500 is below all three moving averages, but the 20-day and 50-day averages are still above the 200-day averages, which could mean additional pain for large-cap stocks over the short haul:
"I do not think the correction is quite over yet, because a lot of the price trends have come below their 200-day moving averages," Nunes said in a phone interview Monday.
When this happens, Nunes usually doesn't see a buying opportunity. "It generally means either we have further to go on the downside or we have a period of consolidation as the market goes through a bottoming-out process before it can recover," he said.
Following the recent price declines, Nunes likes utilities and real-estate investment trusts as two areas of the market where corrections have already occurred and charts have recovered.
You can see in this chart that S&P 1500 utility stocks are well above all three averages:
One way to play utility stocks is through the Utilities SPDR ETF (XLU).
The S&P 1500 real-estate chart shows the sector is also above all three averages:
A way to invest in the REIT sector is via the iShares U.S. Real Estate ETF(IYR) .
-Philip van Doorn; 415-439-6400; AskNewswires@dowjones.com
Platinum Underwriters Holdings, Ltd. Declares A Quarterly Dividend On Its Common Shares
PR NEWSWIRE 1:38 PM ET 10/21/14
Symbol Last Price Change PTP 61.14up +1.03 (+1.71%)
QUOTES AS OF 01:35:14 PM ET 10/21/2014
HAMILTON, Bermuda , Oct. 21, 2014 /PRNewswire/ -- Platinum Underwriters Holdings, Ltd.(PTP) announced today that the Board of Directors has declared a quarterly dividend of $0.08 per common share. The dividend is payable on December 31, 2014 to shareholders of record on December 1, 2014.
About Platinum
Platinum Underwriters Holdings, Ltd. (PTP) is a leading provider of property, casualty and finite risk reinsurance coverages, through reinsurance brokers, to a diverse clientele on a worldwide basis. Platinum operates through its principal subsidiaries in Bermuda and the United States. For further information, please visit Platinum's website at www.platinumre.com.
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