The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Lazy river.
Things were quiet today. News wasn’t interesting and the S&P opened flat, fell some early, bounced, and recovered gently throughout the session. Yields fell across the curve. Earnings sustain the bullish narrative although investors aren’t euphoric about the results (yet). FOMC speculation is more about how much longer Chairman Powell will be Chairman versus the likelihood of a FOMC cut on July 31.
We are in the middle of the summer and markets are acting like it. Volatility is low and while we are just getting into the meat of earnings season, we are nonplused. Investors are bored and prices show it. Capital flow is healthy, 107% today. With action missing from the market, this suggests a steady flow of capital through it. I think this means both retail and institutions are putting money to work without fanfare.
They’ve both been conditioned to allocate money to stocks anywhere, everywhere, and always. Headlines and surprises can always interrupt or enhance those behaviors of course. However right now things are so quiet, one must follow the plan and turn off one’s brain.
And the plan is to put fresh money to work.
Things are too boring to create a casino-like environment and there’s nothing looming which might cause hesitancy, much less risk-mitigation.
The Mag 7 has a shot at livening up the party. Alphabet and Tesla report tomorrow after the close.
So expect one more slow day before we get a chance at fireworks.
See you tomorrow.
-Mike
IMPORTANT INFORMATION
This is general educational information and market commentary and is intended for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction.
All market and economic data herein is as of the date hereof and sourced from Bloomberg unless otherwise stated. The information is subject to change without notice and we have no obligation to update you.
This general market commentary is intended for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The views and opinions expressed constitute the author(s) judgment based on current market conditions, are subject to change without notice, and may differ from those expressed by other employees of Visdom Investment Group LLC ("Visdom") and Visdom. Past performance and any forward-looking statements are not guarantees of future results. It is not possible to invest directly in an index.
We believe the information contained in this material to be reliable and have sought to take reasonable care in its preparation; however, we do not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. Any securities referenced are shown for illustrative purposes only, and are not intended as a recommendation or endorsement by Visdom or by the author(s) in this context. The information presented is not intended to be making value judgments on the preferred outcome of any government decision. This information does not constitute Visdom research, nor should it be considered a recommendation of a particular investment strategy or an offer or solicitation for the purchase or sale of any financial instrument. Investing involves market risk, including the possible loss of principal. You should speak to your financial advisor before making any investment decisions. Visdom and its affiliates do not provide legal, tax or account advice so you should seek professional guidance if you have questions.
