Didn’t it feel like the market was up big last week? It did to me, but there was just a gain of under 1% on uncertainty over what the Trade Deal with China actually was. It really was incredible how stories were moving the market that were totally false. At the end of the week, the market was reacting to a Wall St. Journal report offering details that were simply untrue. In this kind of environment it seems totally inappropriate to react to news that hasn’t been verified. Today is a travel day for me and I see no reason to change our underlying plan of letting the market work for us while waiting for bouts of weakness to add new exposure.
To be clear, our core fundamental thesis remains positive and there is nothing wrong with the rally, the economy, the global inflection in economic activity, or phase 1 of the trade deal – but our tactical indicators remain mixed/overbought so we would look to add exposure on pullbacks in the offense sectors of Info Tech, Industrials, and Financials.
Past performance is not a guarantee of future results. Index returns are unmanaged and do not reflect the deduction of any fees or expenses. All data points are sourced from Bloomberg as of 12/15/19 unless noted otherwise.
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