12:00 TUESDAY – Stock Market Report #122 – 7/6/21
by Robert Holman | The Defensive Advisor | www.defensiveadvisor.com
INSIDE: Current market rating, the economy, and a free offer.
MARKET RATING … No change - now at 7 (where 0 - 4 is bearish, 5 is neutral, 6 - 10 is bullish). Interest rates are so low, and stock prices so high, that I’m opportunistic, but not full of optimism. In other words, I’m still seeking profits while watching for the pendulum to swing back to the other side. As predicted by this report in mid-March, the market is still moving sideways-up (sideways with a slight upward bias).
ECONOMY … Primary worries remain inflation and interest rates – the most current core-CPI reading was 3.8% in May, following 3.0% in April, and 1.6% in March. The bond market views these increases as temporary, as the rate on the 10-year Treasury has declined from 1.74% in March to 1.43% currently.
STOCKS … Capital gains will likely be coming slower than in the immediate post-Covid environment. The reopening trade continues to dominate the market, with a good reactivation in big tech. Picking stocks – the right names - that will perform strongly in this environment has been challenging recently, yet good opportunities still exist. Selection and timing are important.
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