Last updated on May 3, 2023
This should be an interesting week as the market will try to rebound after the worst week for the year. As of this morning, technology is looking good. However, I would be cautious as there are many headwinds out there. The FED has stated, we are a long way from controlling inflation so rate hikes are still in the future. You should Never fight the FED. The market is trying to say it doesn’t believe the FED. Regardless, it is easier to just invest in quality like Treasuries and get a OK return then trying to outwit the FED. Second, 4 objects were shot down over the past week. China is the key suspect. Tensions with China will not be good. This creates a ton of uncertainty. There should be more down than up until we have more clarity. We will need more patience as the FED and China will not be good news for the market.
We still suggest continuing to add to you portfolio. It might be a rocky road but we know that success comes from hard work and effort, laziness will be shown quickly. Do your homework, buy quality, and be patient! This market will turn back up at some point but it will be dependent on earnings growth. We aren’t seeing many earnings revisions yet and probably will not until the FED stops rate hikes. Our suggestion is to buy great companies paying a good dividend. You can hedge your bet buy getting paid to wait for a turnaround. There are many good companies paying over 3% dividends. Just buy quality.
More tomorrow.
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