Let Me Know What You Think
Lately, I have tried to be a little more concise in my newsletter and not include too many charts. I think that most people are more interested in the bottom line; however, I may be wrong in this assumption. If you have any thoughts on this, please shoot me an email. Let me know what you would like to see going forward – more charts, fewer charts, less frequent newsletters, less technical jargon, etc.? I would love to hear how I may be able to make my newsletter more informative and beneficial going forward.
Also, now is the time to review your retirement accounts and make sure they are allocated appropriately for the coming year. If you would like me to help review your retirement account allocations, shoot me an email and we can setup a phone appointment.
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
It is hard to be bearish stocks when most international markets are trending higher, market breadth is positive, and domestic stock market sectors are hitting new 52-week highs and/or are in up-trends. In addition, The Dow Jones Transportation Average hit an all-time high today, the Financial Sector is in a strong uptrend, market pullbacks have been minor, and we continue to see sector rotation which is a hallmark of a strong market. From a technical perspective, there is not much to not like about this market.
The S&P 500 continues to march higher, hitting another new closing high today. Stock market conditions continue to look exceptionally strong.
Below is a chart of the Cumulative New Highs-New Lows market breadth indicator. When this indicator is above it’s 50-day moving average (green shaded areas) it suggests that longer-term market breadth is positive. Market breadth continues to confirm stock market strength.
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.