FXstreet

A strong January has lifted many stocks that are riding the market's coattails. Since there are significant market risks, I have been looking for companies that have such strong fundamentals that they can move up even in a down market.



Wayne Himelsein, one of my managers, says PayPal fits the bill - "The market has an amazing way of carrying all its constituents along with it. And for good reason. Good broad economic news trickles through to everyone. If the Fed doesn’t raise rates, all of corporate America gets cheaper money, so all profits benefit. Makes perfect sense. But we cannot fall for this trap when stock picking. We still have to find the differentiating drivers, for those are the ones that will often hold up better when the markets pull back, or better yet, advance far past the market as it climbs. That’s what we all really want."

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