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12:00 TUESDAY – Bi-Weekly Market Report #238 – 5/28/24

Robert Holman | www.DefensiveAdvisor.com


STOCK MARKET RATING (THE BIG PICTURE) … 6.0 (1-4 bearish, 5 neutral, 6-9 bullish). I’m still optimistic, but cautiously so.  The market has had significant negative days since my last report and has been down more than 600 points overall.  Fears are increasing that a) inflation is not slowing down like it once was, b) the Fed will not lower interest rates until September at the earliest (rather than June), c) the economy will slow down as a result, and d) higher rates may be needed to fight inflationary increases.


Chairman Powell of the Fed acknowledged what everyone suspected.  He said rates may have to stay higher for longer, for interest rates to do their work in reducing inflation.  The market did not drop immediately after that, which was an encouraging sign, but has been generally negative since.


My view is that we have a more-or-less fully priced overall market, with few undervalued stocks.  But stocks can increase in price when earnings increase. There are little pockets of opportunity where one can find opportunities through hard work.


But, also most likely, if the rate on the 10-year Treasury remains below 4.75%, then most likely the market has a decent chance to perform well. If it gets any closer to 5% than that, the market will most likely turn negative.


I still envision a market that moves mostly more-or-less sideways, and slightly up, where income opportunities will be an important part of the overall return.


 

PORTFOLIOS  After reading this report, if you are unsure how to take advantage of these conditions, you may send a message to my Secure Email (just click on the link) 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.

LINKS:      My Story     Strategy     About HWM      Contact     Portfolio Assessment

 

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: Newsletter Signup.


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.


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