Robert Holman - The Defensive Advisor
Apr 14, 20202 min
Bullish … rating of 7 (0 - 4 is bearish, 5 is neutral, 6 - 10 is bullish).
The purchasing power of our investment dollars increased dramatically as we held cash while stock prices declined - we played defense when we needed to. With our stock purchases a few weeks ago, we are now on offense - and taking back territory quickly. The market remains optimistic as the nation continues to debate when and how to return to work.
It’s a total guess about stock price action over the next two weeks - as we get first quarter earnings and second quarter earnings guesstimates. The Wuhan Coronavirus numbers may be the more important determinant of stock prices, but my guess is that economic predictions by major Wall Street firms will play an important role as well.
Compare the above with other strategies that hold onto stocks as they go down (not good) and hold them without adjustment (not good) as prices go back up. Each downshift brings new opportunities which differ from those of the prior cycle.
Leading price increases in US sectors over the last month were in Materials, Energy and Consumer Discretionary (per S&P performance data), although Energy is fading and Technology is catching up quickly. Remember – past performance does not guarantee future results.
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Opinions voiced in this post are for general information only and are not intended to provide specific advice or recommendations for any individual, without complete knowledge of that individual’s total financial profile. No strategy assures success or protects against loss. Past performance does not guarantee future results.