by Robert Holman | The Defensive Advisor | www.defensiveadvisor.com
EQUITY MARKET RATING … 5.0 (0-4 bearish, 5 neutral, 6-10 bullish).
I'm several hours late in publishing this; I had to take care of other business this morning.
The DJIA sold-off last week, but with today’s almost 500 point rally, we are again moving upward. The S&P 500 and the NASDAQ 100 sold off more noticeably. Whether this little rally -- which has reached critical technical indicator cross-over points -- will last or not, is a guess. The DJIA is reaching lower highs, but may have broken it’s pattern of lower lows.
Inflation and interest rates are at still moving upward significantly. Crude oil recovered from its recent sell-off and the energy sector continues to make new highs (through yesterday). Financials continue to move downwards but may be showing signs of new life. Healthcare gave an short-term sell signal and is easing lower. What's happening or what will happen with the war in Europe is also a guess.
So now, moving past the present, what does the future hold? Many are remaining cautious while trying to answer this question for themselves. As for my view, I did commit some capital last week, we may be a little early on that, but we still have ample cash reserves should the market turn unfriendly.
EQUITY MARKETS and the ECONOMY … Talk of significant increases in the Federal Reserve rate did not shake up the market, so we are confident the Fed will lift their key rate by 50bp. The level of prices is becoming painful, even to the mass market affluent. Consumers are feeling increasing price pressures and once again, as in past inflationary cycles, credit card debt is expanding.
PORTFOLIOS … After reading this material, if you are unsure what to do with your portfolio, call me to discuss your circumstances 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 give 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 report.
TO MY CLIENTS … THANK YOU FOR YOUR TRUST. We’ve had great success since we started this RIA in mid-2018, and 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.
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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.