by Robert Holman | The Defensive Advisor | www.defensiveadvisor.com
EQUITY MARKET RATING … 6.0 (0-4 bearish, 5 neutral, 6-10 bullish). Markets looking OK at best. It’s a difficult market with the GOOD of generally increasing corporate earnings being in a bull-bear struggle with the BAD of rising interest rates. The volatility is the UGLY. There are opportunities in a few sectors, and in a few stocks.
EQUITY MARKET and ECONOMY … It’s Tuesday after the MLK holiday and the markets are down again. Investors are not happy; market interest rates have increased again, now up to 1.85% on the US 10-year. That increase really hit tech stocks, especially those not-yet-profitable, quite hard (no matter their true long-term potential).
For the third or fourth time, I’ve been prepared to sell certain stocks on a Monday only to find out that those stocks are going up, and going up on a day when the market as a whole is going down. Yet despite that strong showing, somehow they still end up down for the week. Very frustrating indeed, because often such relative strength plays out with higher stock prices. However, if these stocks cannot hold their relative strength this time, I’m going to release them from the portfolio in favor of better opportunities elsewhere.
The following four paragraphs are a repeat for new readers:
When change happens, we happen to change. That is no accident; that is by design. Many thousands of dollars have been lost by investors “betting on” predictions that never occurred. Many thousands of dollars of profits have also been "not made" (i.e., lost) by investors not dealing with change as it occurs. In other words, we do NOT try to “out-guess” or PREDICT the future. We DO try to assess the impact of change and RESPOND to change that is expected to TRIGGER positive (Buying) or negative (Selling) outcomes. We believe this is the correct approach to outperforming market results.
Of course, my clients receive the quickest and greatest financial benefit from our decisions. Quicker and greater than the readers of this newsletter, but this newsletter will still help you get above average results, as you think about the issues raised herein.
Many investment advisors do not even attempt to respond to change, which to me seems either “lazy” or maybe it's just a “lack of knowledge” of what to do. Unfortunately, the client is the loser when the investment advisor is either lazy or lacking in knowledge.
Please keep in mind that different parts of the equity market are affected unequally by what is occurring now. To find out what sectors, styles, and strategies are working, please consult with a financial professional who works full-time in portfolio management.
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.
FREE OFFER for NEW SUBSCRIBERS – Contact me by email at firstname.lastname@example.org, or by calling 972-702-6032, and I’ll be happy to give you an assessment of the opportunities and risks in your portfolio. I’ll also give you the name of two stocks on my watch list nearing Buy status.
TO MY EXISTING CLIENTS, THANK YOU FOR YOUR TRUST. Excelsior Divitiae.
Published every Tuesday at 12:00 noon. For more information on my investment and planning services, or to sign-up for this weekly e-Newsletter, visit my website:
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.