12:00 TUESDAY – Stock Market Report #114 – 5/11/21

by Robert Holman | The Defensive Advisor | www.defensiveadvisor.com

INSIDE (2-minute read): Current market rating lowered, a free offer, the economy, the market, and tech stocks.

MARKET … My rating opinion is now 6.5 (0 - 4 is bearish, 5 is neutral, 6 - 10 is bullish) due to expected lower valuations (see below). While still bullish, being cautious, it has been lowered and is nearer neutral. The market is still overbought and overvalued in some areas, moving up in others.

ECONOMY … Primary worries remain inflation, interest rates, and capital gains for those making more than $1Mil annually. Increases in these items will reduce stock prices. Today, we are seeing a down move in the market for the first time in a long time. It appears to be profit taking rather than panic. The future looks encouraging for the economy in general. My current thinking is it may take 2 years (rather than one) for a complete recovery from Covid. Many investors are now looking at 2022 being a year of recovery, a continuation of 2021. Become a HWM client to respond to these trends, and to adjust your portfolio so as to profit thereby.

TECH STOCKS … Tech investing is out of favor, with valuations heading down due to expected increases in interest rates, inflation and capital gains. A few reliable experts think that capitulation in the junior tech names may be taking place this week. A few tech stocks are rallying today, and a few of those are junior tech names, although most are established tech stocks.

THANK YOU TO MY EXISTING CLIENTS FOR YOUR TRUST. We’ve had great success since we started this RIA in mid-2018, up more than 60% in our moderate risk portfolios after all income and expenses.

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Opinions voiced in this post are for general information only and are not intended to provide specific advice or recommendations for any individual, without complete knowledge of that individual’s total financial profile. No strategy assures success or protects against loss. Past performance does not guarantee future results.

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