by Robert Holman | The Defensive Advisor | www.defensiveadvisor.com
STOCK MARKET RATING … 3.0 (0-4 bearish, 5 neutral, 6-10 bullish). No change. The weekly bear/bull battle is likely to continue as investors express conflicting viewpoints regarding what action the Federal Reserve will take at its early November meeting.
EQUITY MARKETS and the ECONOMY … Last week started out positively on bullish rumors that the Federal Reserve would ease-off on future rate hikes, but that view of a less-hawkish Fed was short lived. By Wednesday, the market began to sink, and it became increasingly negative as the week wore on. Although yesterday opened in an uptrend, it closed down marginally.
The market consensus still appears to be for a 50bp rate increase, there is growing thought that the Fed could hike rates by 75bp. That would most likely send the market down sharply. I personally believe they will raise rates by 75bp, because inflation is not yet decreasing significantly enough to do otherwise. Please understand these are my opinions and are speculative.
Other major factors moving markets will be the CPI release on Wednesday and the release of corporate profits throughout the rest of the month. Good profit reports may give some a measure of bullish hope, but I believe those hopes will fade as the market continues to focus on inflation and interest rates.
PORTFOLIOS … After reading this report, 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.
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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 and are doing better than the market return since that time period.
Learn from the Bible: 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 in this post are for general information only and are not intended to provide specific advice to, or recommendations for any individual, without our complete knowledge of that individual’s total financial profile. No strategy assures success or protects against loss. Past performance does not guarantee future results.