We hope everyone had a great Thanksgiving and the scale remains a friendly foe!
The market has been on a “tear” upwards since mid-October, continuing to make new all-time highs. Now, the question is “how long will this continue before we experience a pull-back?”
Other than the market being in a somewhat “over-bought” state and approaching some of our “technical based” resistance levels (this situation typically invites some profit-taking) we do not see anything “glaring” to derail the market unless an unforeseen outlier event either domestic or geo-political takes place. Of note, the market has seemed oblivious to the ongoing “impeachment” proceedings.
The economy continues to steadily cruise along, the job rate (unemployment and participation) continues favorably and based on reports of the Thanksgiving shopping/spending numbers, the retail sector should report good fourth quarter earnings.
The China trade talks appear to be moving in the right direction along with the signing of the North American Free Trade agreement.
This all bodes well for the economy.
Given the above-mentioned statements, come January, we are a bit cautious and will be most vigilant to any changes that may begin to unfold in the market environment.
If we detect a “major” shift in market direction, we will keep you posted and will be ready to take a “defensive portfolio posture.”
In the meantime, we at Saunders Financial wish you the happiest of holidays and are looking forward to an exciting New Year!!!