After Geopolitical Instability, Karpel Advises Keeping a Watchful Eye

From the floor of the CME group, Vlad Karpel, Contributor to Traders Exclusive, discusses recent geopolitical events and events that generally drive the market.¿ The instability in Iraq of the past few days has pushed oil prices and oil companies’ stocks up, but the market seems to have shrugged off the geopolitical news, and all eyes are now focused on 2Q earnings. Recently, transport companies like FedEx, as well as Adobe and RedHat, beat estimates and have jumped. The R2k rebounded from recent lows; small caps continued uptrend. We’re in an expansion trend, and all signs point to the upside. Karpel advises keeping your eyes on the VIX, and searching for stocks with low P/E and low intrinsic value. Finding the most under appreciated stock in a given sector will reward the watchful investor. Value investing has become very important. Karpel advises using a statistical approach to find stocks that are under appreciated by Wall Street but will outperform the market over the next six months to a year.