Still bullish, for now … still a rating of 6-7 (5 is neutral, 0-5 is bearish, 6-10 is bullish).
Sometimes, it seems the whole story with the markets is either Coronavirus or the Federal Reserve, doesn’t it?. But earnings and economic growth are always there, even if sometimes in the background. It’s difficult to assess the impact of events like this coronavirus. It was being ignored by the market, until China revised the statistics, which brought it back to the forefront.
Bolstering investor confidence are the earnings upside surprises from companies like Microsoft, Intel, Apple, Alphabet, Amazon, and NVIDIA. Analysts see earnings growth for the S&P 500 of between 2.5% to 5% for Q1 2020 and Q2 2020.
Our primary holding is up 8.97%; the secondary is up 12.12% but the third holding, about 18.8% of our portfolio, is up 1.45% (was up 3.8% about a week ago), so it’s time to change this out for something else. I really thought pharma had a chance to perform better than it has.
Of concern is that the market is already up 4.89% through 11:00 today - compare that with the S&P 500 earnings forecast above.
The market always has a sell-off sometime during the year, every year. For now, I’ll remain slightly bullish.
To see prior editions of this blog letter, go to http://www.defensiveadvisor.com/blog/
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. To determine what is appropriate for you, consult a qualified professional financial advisor. No strategy assures success or protects against loss.