Stock Market Update
I am not publishing a comprehensive newsletter this week in that I am currently at an industry conference; however, my bullish view on the market has not changed and is summarized below.
The Bottom Line
Bias:
Positive for Stocks and Commodity Prices
Negative for Interest Rate Sensitive Bonds
• Short-term, the stock market has been correcting within a longer-term uptrend. As long as the S&P 500 does not fall below the February/April lows, the long-term trend is still up.
• Long-term, the weight of the evidence continues to be bullish for stocks. At some point, this will change and when it does, I will have no problem flipping to a bearish bias and reallocating client accounts to a more defensive posture. However, market technicals continue to signal that we are in a bull market and thus we should be invested in stocks aggressively.
• Bond prices have been falling as bond yields have transitioned out of a 37 year period of decline. This trend of falling bond prices will adversely affect retirees for years to come. If you are interested in receiving my E-book (Bonds – A Ticking Time Bomb) on this topic, shoot me an email and I will send it to you for free.
Client Update
I continue to view stock market risk as low, thus our accounts have high stock market exposure.
We do not hold any interest rate sensitive bond funds.
Craig Thompson, ChFC
Email: [email protected]
Phone: 619-709-0066
Asset Solutions Advisory Services, Inc. is a Fee-Only Registered Investment Advisor specializing in helping the needs of retirees, those nearing retirement, and other investors with similar investment goals.
We are an “active” money manager that looks to generate steady long-term returns, while protecting clients from large losses during major market corrections.
Asset Solutions is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.