12:00 TUESDAY – Bi-Weekly Market Report #232 – 3/5/24
by Robert Holman | www.DefensiveAdvisor.com
STOCK MARKET RATING (THE BIG PICTURE) … 6.5 (1-4 bearish, 5 neutral, 6-9 bullish).
The market is going through turbulence here … expect some slippage as new highs are reached … the Fed may be the key to where we are headed next … a market reset is possible ... valuations are high … if the upward trend continues, it may only produce an overall single-digit return … many reasons to stay attentive to events as they unfold.
In his latest shareholder letter, Warren Buffett laid out why he and his team aren't being more aggressive with their capital (stock purchases): Namely, there aren't many good deals. As of the end of 2023, Berkshire's cash increased to an all-time record $167.6 billion. Remember, Mr. Buffett buys when a stock is below his “value estimate, plus a margin of safety (an additional value discount).”
For more than 150 years, the Shiller P/E has averaged a reading of 17.1. On Feb. 23, it closed at double this value (34.25). It's one of the highest readings during a bull market rally in history.
MAY BE OF INTEREST: https://www.fool.com/investing/2024/02/27/warren-buffett-39-billion-silent-warning-wall-st/
PORTFOLIOS … After reading this report, if you are not sure what to do to take advantage of these conditions, you may go to: www.defensiveadvisor.com/contact to send me a secure email, and I’ll reply with the information you need.
TO MY CLIENTS … THANK YOU FOR YOUR TRUST. We’ve had great success since we started this RIA in mid-2018 and have done better than the market since that period.
Learn from the Bible: Proverbs 15:22 MSG - Refuse good advice and watch your plans fail; take good counsel and watch them succeed.
This 2-minute report is published every other Tuesday afternoon. To sign up for this bi-weekly e-Newsletter, go to: www.defensiveadvisor.com/services.
Opinions in this post are for general information only. They are not intended to provide specific advice to, or recommendations for, any individual without our complete knowledge of that individual’s total financial profile. No strategy assures success or protects against loss. Past performance does not guarantee future results.