The Northern Star Newsletter 6/27/19 - Stocks Touch Record Highs
Message from Jon
Ever since the end of May, we have seen a rebound in the markets. This is stoked by the Fed and the idea of them being accommodative to the markets and interested in a reduction of interest rates as well as an upbeat progress report on the trade tensions with China happening at the G20 Summit.1,2
At present, the opinion is that the Fed will reduce rates in the coming months while the trade war will also come to resolution. This is promoting a renewed interest and also a renewed doubt to the validity of the rally we are witnessing. The side taken depends on your disposition, I guess.
Stormguard is sitting at a 0.02 as of this writing, having declined to a -0.85% as a result of May's end, demonstrating that a bear market condition had set in. We have seen also the change to Dorsey Wright's asset class pecking order, still favoring equities but now in 3rd place, bonds.
We should, in our opinion, see the President's attitude and disposition become mild in the months to come as a result of preparations for his election campaign in 2020. Hopefully this happens and geopolitical tensions recede. Not sure that matters much at the moment, but we will have to wait and see if it does as the month's progress.
Till we speak again,
Stocks Touch Record Highs
WEEKLY UPDATE - JUNE 24, 2019
The Week on Wall Street
The S&P 500 hit an all-time peak of 2,964.03, in intraday trading Friday, while improving 2.20% across five market days. The Dow Jones Industrial Average and Nasdaq Composite posted respective, 5-day advances of 2.41% and 3.01%. In addition, the MSCI EAFE benchmark of overseas stocks rose 2.58%.
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