12:00 TUESDAY – Stock Market Report #192 – 1/10/23
by Robert Holman | The Defensive Advisor | www.defensiveadvisor.com
STOCK MARKET RATING … 5.0 (0-4 bearish, 5 neutral, 6-10 bullish), my assessment of present and future market conditions remains unchanged at “neutral”.
REPEAT from LAST WEEK: Here are recent trends for each of the 3 major indexes --- the DJIA did top the August highs for a few days, but the broader S&P 500 did not surpass 5% under its August highs and the NASDAQ failed to get within 10% of its prior high. I do think we could be bearish for the next 3-4 weeks or so. It’s a new year, but not a new viewpoint, because not much is different yet. Expect volatility to continue until a clearer vision of what is ahead emerges.
The most significant economic news last week was on jobs. Thursdays ADP employment release showed jobs up 225K and Friday’s BLS release on non-farm payrolls showed a 233K increase. Today, Fed Chair Powell spoke again about needing to raise rates higher for longer. This is to be expected because the pace of wage increases is still inflationary. Until jobs growth recedes to increases that are less than the overall 2% targeted growth rate in inflation, Fed rate increases are likely to persist.
Will the CPI release on Wednesday move the markets? Most likely, yes.
PORTFOLIOS … After reading this report, if you are unsure how to position your portfolio to take advantage of these conditions, 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 and 27:12, Ecclesiastes 8:7, Joshua 1:9, Proverbs 3:5-6, Ephesians 1:17, 1Chronicles 29:11-13, and 1 Chronicles 12:32. I recommend you read them in this order.
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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.