Weekly Economic and Stock Market Commentary: December 6, 2021
As for the stock market specifically:
As far as I am concerned, last week qualified as a cruel week. It wasn’t so much that the markets fell by up to nearly 3%, but for the times the bulls staged a comeback, only to decline substantially by the end of the day. It was a great example of snatching defeat from the jaws of victory.
The good news was found in the international markets, which barely moved for the week. The bad news is that the prolonged underperformance by international stocks means we own little to none of them.
Where is Harry Truman’s one-handed economist when you need one.
It was a very ugly week for the risk-assessing tools I use. Two weeks ago, the market was overbought by a fair degree. That no longer is the case (I am sure you know that). Near to mid-term WEALTH PRESERVATION mode is in effect. All against the backdrop of a market where U.S. stocks remain stronger than bonds and cash (at least as of this writing). There is much, much more that can be stated here, but it’s too long and too detailed for email.
Remember, Xs mean OFFENSE or wealth accumulation, while Os mean DEFENSE, or wealth preservation.
Below is where our indicators stand as of December 3, 2021 (Courtesy Dorsey, Wright, and Associates).
On a general note:
The Department of Labor announced the US economy gained 210,000 jobs in November. This was well below the anticipated 550,000 jobs. The unemployment rate fell to 4.2%. Average hourly earnings grew over the past 12 months, but those gains did not keep up with inflation.
Please reach out to me with any questions.