12:00 TUESDAY – Bi-Weekly Market Report #239 – 6/11/24

by 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.  With a few exceptions, not much has changed. Apple is moving up on new AI initiatives.  NVIDIA has split 10 for 1. 

My opinion is we have a more-or-less fully priced overall market, with few undervalued stocks.  Stock prices generally increase as earnings increase.  There are little pockets attracting investor attention where one can find opportunities.

Fears continue to increase that a) inflation is not slowing down like it once was, b) the Fed will not lower interest rates until the end of the year at the earliest (originally it was anticipated to be June), and c) rates will remain high and the economy will slow down as a result. Fed Chairman Powell acknowledged what everyone suspected – that rates may stay higher for longer.

If the rate on the 10-year Treasury remains below 4.75%, then most likely the market has a chance to perform well. If it gets any closer to 5% than that, the market will most likely turn negative.  With a few important exceptions, I still envision a market that moves mostly sideways and slightly up, net-net, where income opportunities will be an important part of overall return.

THIS ARTICLE MAY BE OF INTEREST: Josh Brown doubles his Amazon position, here's why (msn.com) 

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.

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Learn from the Bible: Proverbs 15:22 MSG - Refuse good advice and watch your plans fail; take good counsel and watch them succeed.

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Opinions in this post are for general information only, and 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.