12:00 TUESDAY – Stock Market Report #123 – 7/13/21

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 7.0 (where 0 - 4 is bearish, 5 is neutral, 6 - 10 is bullish). Interest rates are so low, and stock valuations so high, that I’m opportunistic, but not full of optimism. In other words, I’m still seeking profits but I’m wary the pendulum will swing back in the opposite direction. As predicted by this report in mid-March, the market is still moving sideways-up (sideways with a slight upward bias over time).

ECONOMY … Primary worries remain inflation and interest rates – the most current core-CPI reading Increased to 4.5% year-over-year in June. The Fed and the bond market view these increases as temporary (note: the rate on the 10-year Treasury declined from 1.7% to near 1.37% currently) but that view is highly questionable, as inflation was expected to decrease from May to June.

STOCKS … It’s likely that capital gains will slow down, compared to the immediate post-Covid environment, as some growth is in the rearview mirror. Reopening trades continue to dominate the market; however, tech is rebounding. Picking stocks – the right names – that will perform strongly in this environment is challenging, yet good opportunities still exist. Selection and timing are all important.

FREE OFFER for PROSPECTIVE CLIENTS – I control risk by adjusting our portfolio holdings, either deleting sectors or selling down sectors concurrent with increases in market risk, in order to preserve our capital. I would be pleased to give you a complimentary portfolio evaluation and risk assessment --- pointing out any flaws we find and giving you our ideas for improvement. Contact me at roberth@defensiveadvisor.com or by calling 972-702-6032 or by sending your contact information via the website link below.

TO MY EXISTING CLIENTS, THANK YOU FOR YOUR TRUST. We’ve had great success since we started this RIA in mid-2018, up more than 80% in our moderate risk portfolios for the 3-year period, after all income and expenses are included.

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Opinions voiced in this post are for general information only and are not intended to provide specific advice or recommendations for any individual, without complete knowledge of that individual’s total financial profile. No strategy assures success or protects against loss. Past performance does not guarantee future results.