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The "Our Blog" section of this site is a historical catalogue of our personally written weekly client emails. Clients might find this database to be a useful reference, while visitors and potential clients might like to review the consistency and depth of our general messaging. Weekly updates from December 2018 forward to present day are currently available. Older vintages will be added as we're able.
Nonetheless, in a case of looking through to "the other side", Boeing was added to client portfolios this week.
The light at the end of the tunnel got brighter, while the tunnel itself got darker. Nonetheless, the visibility "to the other side" makes me incrementally more positive on the market outlook... but additions will only be made on market weakness.
Despite the uncertainty of who will be the next U.S. President, markets welcomed the fact that Congress will remain split. Markets also welcomed continued good economic data. But markets are not, in my opinion, properly discounting the Covid surge.
A position in Visa was added at $181/share. Many other names are on my watch list. But with surging Covid-19 caseloads and the real possibility of a contested election next week, it's no time to be a hero. Additions will continue to be incremental.
Europe is approximately 2 to 4 weeks ahead of the U.S. in its own resurgent wave of Covid-19. While current U.S. economic data remains robust, European PMI data has re-entered contractionary territory. Also, thoughts on the upcoming U.S. election.
With new daily highs being reported in many regions of the developed world. Since the weather is only now taking a true turn for the worse, this does not bode well for the weeks and months ahead.
… with the takeaway message being that portfolios maintain a near-neutral equity weighting.
2020 has been a year of drama. This foreseeable "bombshell" development just adds to the mix. But how this plays out is very uncertain with a number of legitimate scenarios possible.
Scholte Wealth Management uses technical analysis as a supporting consideration when making equity allocation decisions. While not the primary determinant, its utility is especially important when key portfolio adjustments loom. Now is such a time.
The recent decline in U.S. cases appears to have ended. The country enters autumn with a worryingly high level of community spread. Also, the 1/2 position of Apple sold owing to frothy speculation on August 20th has now been bought back.
