Stock Market Update
Two weeks ago I wrote about how market technicals were suggesting internal strength and thus the market was likely to continue its uptrend once we exited the current short-term correction phase that we are in. Last week I wrote about price action and how the market was at an inflection point, sitting right above key support.
Nothing has changed since I wrote those two newsletters. Based upon market technicals, the weight of the evidence is still bullish for the stock market. Market internals are still strong and support has held.
I am still of the belief that the weight of the evidence is suggesting that the broad market is only correcting and we are still in a bull market. Things could change and I will continue to monitor market technicals; currently, however, the weight of the evidence continues to suggest higher prices over the intermediate term.
If you have any questions, please feel free to shoot me an email.
The Bottom Line
Positive for Stocks and Commodity Prices
Negative for Interest Rate Sensitive Bonds
• Short-term, the market is correcting. The market is at an inflection point, sitting right above key support. If the market is as strong as I think it is, I would expect price to not fall below this significant level. If it does, we will need to reevaluate our bullish thesis.
• 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.
I continue to view stock market risk as low, thus our accounts have high stock market exposure.
I have not made any major changes to our client accounts this year.
We do not hold any interest rate sensitive bond funds.
Craig Thompson, ChFC
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.