Updated: Mar 8
by Robert Holman | The Defensive Advisor |
MARKET BULLISH … Rating of 8 (0 - 4 is bearish, 5 is neutral, 6 - 10 is bullish). After I published last week’s newsletter, I decided to number them, and discovered I’m over number 100!
ECONOMY and MARKETS. The market always looks ahead, and continues to focus on a better economy this summer when vaccinations are widespread and people can resume their everyday activities. The stimulus package, when passed, will give the economy some additional momentum. The U-6 unemployment rate continues to improve and shows a strengthening economy. People are going back to work, and the economy is growing.
CHANGING. The market seems to be overbought in certain groups like tech. First it was the “old tech” and now the “new tech” may be getting hit. The former group seem to be less volatile than the latter. Money seems to be shifting to certain subsectors of the energy and finance sectors.
RISKS. A blow-up in Covid cases, higher interest rates, or continued signs of inflation all could derail the market advance that everyone is expecting.
OTHER. Bitcoin is taking a breather after a huge run-up. It’s just under $50K/coin today after peaking at $56-57K/coin last week.
CONCLUSION. Everything looks good for right now. We could experience a sideways or sideways/up market for awhile.
P.S. I have researched and uncovered 4-5 different ways to add bitcoin to our stock portfolios, with different levels of risk. If you are interested in doing that, or are opposed, please give me a call or send a text message. Just to be clear, I would not enter into a position until the timing looks more favorable.
For more information or prior letters, go to my website http://www.defensiveadvisor.com/blog
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Opinions voiced in this post are for general information only and are not intended to provide specific advice 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.