by Robert Holman | The Defensive Advisor | www.defensiveadvisor.com
INSIDE: Current market rating, interest rates, the economy, stocks, and a free offer.
AGAIN, NOT MUCH NEW THIS WEEK
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 (todays path is different from 6 months ago when we had a more rapid rate of increase).
I control risk by adjusting our portfolio holdings as market risk increases - either selling down or selling out - in order to preserve our capital. Then when the risk-reward profile returns to bullish, we invest our cash opportunistically for capital gains.
THE ECONOMY … Is really a mixed picture. For example, July retail sales ex-autos was down <0.4%> but more people are working, as unemployment declined from 9.8% to 9.2%. The Covid-delta variant is having an economic effect. However, signs point to a slowdown in new delta cases.
INTEREST RATES … Interest rates are mostly holding steady. Most market followers see rate increases before the end of the year. Fed Chairman Powell did not announce any change to Fed policy at the Jackson Hole meetings. Most believe we will get a verbal change in policy at the September Fed meeting, with the new plan put into action before year-end.
STOCKS … Picking stocks that will perform strongly in this environment remains challenging, yet good opportunities still exist. Finding and selecting them is challenging and timing purchases is 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 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 email@example.com or by calling 972-702-6032 or by sending your contact information via the website link below.
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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.