Stocks are up today! It’s a welcome relief after the slog since prices peaked in early January. But as the saying goes: “One day does not make a trend.” The S&P 500 and Nasdaq 100 indexes have already crossed into bear market territory. And whether you’re looking at moving averages, trailing returns or any other price-based indicator … it’s clear that the dominant trend in most markets is now bearish. That’s OK!
The Federal Reserve will release the minutes of its May meeting tomorrow afternoon. We have a full portfolio of open positions I believe are well positioned to outperform the market over the next several months. Of course, the Fed is a powerful force, and investors’ reactions to its policy moves and rhetoric can reverse or accelerate trends. I’ve always found it’s best to judge the market’s reaction to Fed moves before making any rash decisions.
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