12:00 TUESDAY – Stock Market Report #180 – 10/18/22
by Robert Holman | The Defensive Advisor | www.defensiveadvisor.com
STOCK MARKET RATING … 3.0 (0-4 bearish, 5 neutral, 6-10 bullish). Still no change. The weekly bear/bull battle is likely to continue. Most investors are looking for another large interest rates hike by the Fed at its early November meeting.
EQUITY MARKETS and the ECONOMY … This week started out positively in response to good earnings reports at some companies, but bullish gains early today are giving way to investor caution.
The market consensus is now for a 75bp rate increase by the Fed. Aggressive rate hikes are likely until interest rates exceed the inflation rate. When and if that happens, the market is likely to sell off. As the market looks ahead to that meeting, investors are likely to grow more cautious, so next week is likely to see bearish price action.
Earnings will continue to be a major factor weighing on markets. 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.
Oil and healthcare continue to be the best performing sectors of the market.
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.
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Learn from the Bible: Proverbs 15:22, 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. Also, Proverbs 12:5, 15:22, 21:5, 1 John 4:1, Ephesians 1:17
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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.