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12:00 TUESDAY – Stock Market Report #128 – 8/17/21

by Robert Holman | The Defensive Advisor | www.defensiveadvisor.com


INSIDE: Current market rating, interest rates, the economy, stocks, and a free offer.


MARKET RATING No change from 7.5 (where 0 - 4 is bearish, 5 is neutral, 6 - 10 is bullish). The market continues sideways with an upward bias (this distinguishes todays path - creeping along - with about 6 months ago when we had a much steeper trajectory.


Every day since 7/18-7/19 (down 1,025 points for the two-day period) that the market has gone up, except one, the market finished higher than it opened, and conversely every day the market trended lower, it opened higher during the day. In other words, opening prices have been a poor indicator of where the market finishes.


INTEREST RATES … After showing strong signs of increases just ahead, that was reversed by an unexpectedly low reading of 70.2 (81.6 was expected) on August consumer sentiment versus 81.2 the month before. Such a low reading brings expectations that the economy will be slowing down, and thus rates fell.


THE ECONOMY The premise that Covid-delta variant was having little economic effect has been proven wrong also. Retail sales ex. autos were -0.4% for July. August could be worse.


STOCKS … I put some uninvested cash in some accounts to work believing interest rates were rising, the day before consumer sentiment was reported. So, it may take 6-8 weeks longer, when Covid-delta subsides, for that to work out. 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.


FREE OFFER for PROSPECTIVE CLIENTS – I control risk by adjusting our portfolio holdings - either selling down underperforming sectors or entirely deleting sectors - concurrent with increases in market risk, in order to preserve our capital. We invest in sectors opportunistically when market risk is lower.


I would be pleased to give you a complimentary portfolio evaluation and risk assessment -- pointing out any flaws we find in your portfolio and giving you our ideas for improvement – all at no cost to you. Contact me at roberth@defensiveadvisor.com or by calling 972-702-6032 or by sending your contact information via the website link below.


Published every Tuesday at 12:00 noon. For more information on my investment and planning services, or to sign-up for this weekly e-Newsletters, visit my website: http://www.defensiveadvisor.com/blog OR http://www.defensiveadvisor.com/contact


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.

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