As for the stock market specifically:
Two items of note, while overall they are in positive trends, each of the major market averages charts are nearing their trend lines. And second, the relative strength of stocks vs. bonds and cash is close to going back to favoring bonds and cash. I’ll keep my eyes peeled and keep you up-to-date as/if/when things change
The change in trend, coupled with changes in relative strength, would represent significant increases in stock market risk. To put it another way, it would lower the probability of successful investment results for the foreseeable future. Again, I’ll keep you informed.
With the week’s market action, the NYSE and OTC Bullish Percent Indicators went to defense. I now recommend WEALTH PRESERVATION.
Remember, Xs mean OFFENSE or wealth accumulation, while Os mean DEFENSE, or wealth preservation.
Below is where our indicators stand as of September 2, 2022 (Courtesy Dorsey, Wright, and Associates).
On a general note:
The S & P Core Logic Case-Schiller Home Price Index for June came out last week. The national index showed a price appreciation of 18% from June 2021 to June 2022, which is a decrease from May’s 19.9% gains. The 20-city index had gains of 18.6% in June, which compares with 20.6% in May, while the 10-city index rose 17.4%, down from 19.1% in May.
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