The market is getting hit on the back of increased cases of Covid-19, as well as pressure on the Banks given the Fed’s stress test announcement last night and restriction on stock repurchases and Dividends. We continue to believe the market is already in a multi-week consolidation pattern that should be marked with increased volatility both up and down, with not much progress through most of the summer. In this scenario, we continue to advocate adding exposure each time the S&P 500 (SPX) moves back to 3000. This is the second drop to this level and each time we add a little more offense. Again, that doesn’t mean the SPX cannot move below 3000, but we believe that when looking out over the next 6-12 months, the SPX and economically sensitive areas should see solid gains from current levels even if there is a bit more weakness first.
Sign up to access the rest of this content!
This content is not available to free users. Sign up for a paid account to access the rest of this content.