The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Good vibes
Apple made shareholders happy yesterday evening and US equity investors pushed the S&P 500 higher during the session. Market breadth wasn’t great but the larger market cap stocks took the lead and dragged the major indices upward, printing another all-time high for the S&P today. Some positive rumors emerged from Iran today too, helping push crude lower. The quality of the stories is low however and we’ve been down this road before. The market only slightly embraced the development. The Treasury curve was essentially unchanged today and currencies were quiet. Precious metals, notably silver, caught a bid. Bitcoin rallied significantly.
The bull market in stocks continues and it’s likely that beginning of the month flows, were at work lifting offers today. The overall news environment is stable enough to invite risk-taking and the earnings season suggests healthy operations and economic conditions for business. Valuations and momentum might be nits worth picking but they alone can’t keep prices from climbing.
The big picture is positive. The end of the US/Iran conflict would deliver a fresh boost to upside. The economic conditions are delivering reasonable growth and the inflation, while high, isn’t so high as to derail things. It’s not a Goldilocks situation for shareholders but it’s pretty darn good.
What else is there to say? The very short term might be noisy but the medium and longer term look inarguably positive.
See you Monday, have a great weekend.
-Mike
Visdom Market Commentary
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