by Robert Holman | The Defensive Advisor | www.defensiveadvisor.com
EQUITY MARKET RATING … 3.5 (0-4 bearish, 5 neutral, 6-10 bullish) … With talks easing tensions between Russia and Ukraine, oil prices are declining. Inflation is still persistent, the Fed wants to begin tightening, and money still flows into safe havens. We will lift our rating one notch to a 3.5 bearish rating with further changes pending the outcome of Russia-Ukraine negotiations.
EQUITY MARKETS and the ECONOMY … It’s difficult to get the impact of oil prices out of inflation data – it’s buried in electricity costs, transportation and delivery costs, costs of making goods purchased for resale, etc. Oil prices effect everything dramatically, more than any other commodity; nothing else is like oil.
Just as oil prices have reached levels that incentivize drilling for new oil, along come political attempts to take away those funds from drilling. If enacted, a windfall profits tax will raise oil prices even higher, cost consumers more at the pump, raise the price required for after-tax profitable new drilling, cause more inflation. Contributes to the problem, not to the solution.
Why does it seem that everything Washington attempts is so-1980s? Such failed thinking? What about some new, creative ideas? Why not some 2020 solutions to 2020 problems? Why not something to speed up drilling, which increases oil availability and leads to reduced oil prices?
PORTFOLIOS … Position your portfolios consistent with these trends. If you are unsure what to do, call me and I’ll explain what ought to be done to help your situation. Just click here, and I’ll be happy to give you a complimentary portfolio evaluation along with a recommendation for two stocks to put into your portfolio.
I’ll also explain what’s good about your portfolio, how it’s likely to perform in upcoming months, and giving you a couple of ideas for improvement, all at no cost to you.
Alternatively, you may contact me by calling 972-702-6032, and I’ll give you a way to securely email your portfolio holdings to me and I will input the data for the evaluation.
TO MY CLIENTS … THANK YOU FOR YOUR TRUST. We’ve had remarkable success since we started this RIA in mid-2018, for are doing better than the market return over the same time.
Excelsior Divitiae. Proverbs 21:5, 22:3, 27:12 and 3:56, Joshua 1:9, Ecclesiastes 8:7, 1Chronicles 12:32 and 29:11-13, and James 4:13-16.
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: http://www.defensiveadvisor.com/services 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.