12:00 TUESDAY – Bi-Weekly Market Report #249 – 11/6/24
by Robert Holman, CFA CFP | www.DefensiveAdvisor.com
STOCK MARKET RATING (THE BIG PICTURE) … 6.0 (1 - 4 is bearish, 5 is neutral, 6 - 9 is bullish). I waited to publish this letter until after the election. I wanted to get a handle on what investors will be dealing with going forward. In general, the markets do not like uncertainty.
There was no doubt that a Trump presidency was going to be good for business, and the market responded predictably. In late September, I added a couple of stocks that gave my investors a significant short-term return.
But generally speaking, stock prices relative to earnings and cash flow are very high. While investors may make opportunistic profits in the short term, the higher risks must be acknowledged, even if prices continue increasing. Maintaining this view, in my opinion, is prudent - it keeps one ready to reverse course should conditions warrant.
I recently pruned holdings in accounts of very risk-averse clients who asked to be taken out of the market - they stated their willingness to buy back in at higher prices.
Recent macroeconomic news indicates that the pace of economic activity is slowing, but what will January bring? We are in a rate-cutting cycle, which is good news for consumers and the markets. I’m staying fully invested while maintaining my cautious view.
Volatility should improve, as long as: a) interest rate cuts continue, and b) nation-state conflicts do not escalate. I stand ready to make portfolio changes should anything above prove wrong or as economic conditions change. Staying vigilant in these uncertain times is paramount.
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PORTFOLIOS … After reading this report, if you are unsure how to respond to these conditions, you may send a message to my Secure Email and I’ll reply with the information you need. I’ll also be happy to give you a free portfolio assessment, see the link below.
TO MY CLIENTS … THANK YOU FOR YOUR TRUST.
LINKS: Get a 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 report is a 2-3 minute read, 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 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.
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