The Bottom Line
Bias:
Positive for Stocks.
• Long-term, stocks are in an uptrend and we are in a bull market.
• When the S&P 500 is hitting all-time highs, international markets are advancing strongly, and market breadth is positive – there is no other way to view the market other than positive!
• Stock market breadth is positive and confirming the strength we are seeing in the stock market. Market internals continue to suggest higher stock market prices.
Client Update
I have viewed market risk as low for most of this year, thus our accounts have had high stock market exposure and any changes that I made have been minor.
I have continued to add to our equity holdings by buying stock funds that have pulled back and are in long-term up-trends.
Market Technicals
The stock market continues to march higher, hitting another new closing high today. Each pullback that we have gotten in stocks this year has been minor. Market Breadth is also positive with all of the market sectors trending higher and near their 52-week highs. Our market is not the only one trending higher. Most international stock markets are also in strong up-trends. In summary, stock market conditions continue to look exceptionally strong.
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.
Email me to schedule your free, no obligation retirement account allocation review.
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.