12:00 TUESDAY – Bi-Weekly Market Report #250 – 11/20/24
by Robert Holman, CFA CFP | www.DefensiveAdvisor.com
STOCK MARKET RATING (THE BIG PICTURE) … 7.0 (1 - 4 is bearish, 5 is neutral, 6 - 9 is bullish). I’ve raised my rating on the market again. Respected pundits almost universally agree that the bull market has further to run - I’m trusting the assessment of my peers. There was no doubt that a Trump presidency was going to be good for business, and the market responded predictably. But the state of the economy today is very different from what he faced in 2016 when first elected President. Both parties are spending way too much money. Conversely, Trump is moving quicker this time as he gathers his new group of advisors and cabinet members.
I have stayed fully invested even when my outlook was guarded and have been rewarded for doing so.
However, I’m forcing myself to be disciplined by reiterating that stock prices are generally very high relative to earnings and cash flow. 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.
In accounts where I pruned holdings for very risk-averse clients - ones who asked to be taken out of the market – because they stated their willingness to buy back in at higher prices - I am in the process of doing just that.
THIS ARTICLE MAY BE OF INTEREST: (ctrl and click simultaneously)
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 give you a free portfolio assessment, see the link below.
TO MY CLIENTS … THANK YOU FOR YOUR TRUST.
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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