by Robert Holman | The Defensive Advisor | www.defensiveadvisor.com
EQUITY MARKETS RATING … Staying at 7 (where 0 - 4 is bearish, 5 is neutral, 6 - 10 is bullish). As I’ve been saying for a month, we entered a rally phase 4 weeks ago. While my risk concerns are diminished, I’m still very cautious in my approach to adding new investments with valuations high, the economic recovery in question, and money slowly tightening.
Two major investment houses have divergent opinions on the economy and the markets – Morgan Stanley says the US markets are not the place to be next year, and Goldman Sachs is optimistic that we are going to be seeing another very, very strong year for the markets. Two of the strongest and smartest firms on the planet cannot agree on where we are going. One is surely wrong.
THE ECONOMY … The market continues to react favorably to the Feds widely-expected tapering announcement, even with expectations of interest rate hikes in 2022, development, indicating participants realize money was too easy, rates were too low, and inflation may not be abating.
An emerging concern is that Covid-Delta may be increasing again in some states. Of course, this would stall the recovery, slow economic growth, and be unfavorable for most stock prices.
EARNINGS … So far, 3rd Qtr. earnings, and/or forecasts for the 4th quarter, continue to be better than expected, so Mr. Market will probably continue up for a while. Consequently, I’ve made several new commitments with available funds.
PORTFOLIOS … Just click here, and I’ll be happy to give you a complimentary portfolio evaluation – sending you an email explaining what’s good, how it’s likely to perform, and giving you a couple of ideas for improvement – again, all at no cost to you.
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TO MY CLIENTS, THANK YOU FOR YOUR TRUST. We’ve had great success since we started this RIA in mid-2018, up more than 94% in our moderate risk portfolios for the 13-quarter period ended September 2021, 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.
 Neil Cavuto show, Coast to Coast, Fox Business, 11/16/21, 11:15 a.m.