12:00 TUESDAY – Stock Market Report #127 – 8/11/21
by Robert Holman | The Defensive Advisor | www.defensiveadvisor.com
INSIDE: Current market rating, the economy, and a free offer.
MARKET RATING … I upped my rating to 7.5 (where 0 - 4 is bearish, 5 is neutral, 6 - 10 is bullish). The market was looking for a 10% or so correction in August which hasn’t happened (we had one bad day, down 900+ points) and looks unlikely to occur in the upcoming two weeks. However, as we rally from here, there may be some uncomfortable days along the way.
ECONOMY … The market seems to be looking past the Covid-delta variant, believing that it builds in intensity in a region for 30-60 days, then reaches a peak, and then begins to subside. So, no lockdown is called for, as the economic impact of Covid-delta is far less that the impact we saw for Covid-19.
Recent increases in interest rates are leading to some investment opportunities. The US-10-year has reversed, climbing from 1.19% to 1.33%. Today’s CPI inflation reading was better than feared, giving some investors an element of confidence that inflation may subside. Oil has trended downward for the last week or so.
STOCKS … I will be putting some uninvested cash to work. Picking stocks that will perform strongly in this environment remains challenging, yet good opportunities still exist. Selection and timing are all important.
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 expenses are deducted.
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Opinions voiced in this post are for general information only and are not intended to provide specific advice to 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.