First, Happy Mothers Day to all the wonderful mothers out there.
Ever have a day of low inspiration? Well, I’m having one. Not as I’m blue or depressed and ecstatic, just not enthusiastic to write today.
With that, what’s up with the markets? Well, the markets!
While all of us still worry about the health and financial impacts of the coronavirus, the market is looking forward.
As the great Jesse Livermore discovered over a century ago, there is nothing new in the market. The market looks forward; it always has and it always will.
As trend followers, not stirred by bad headlines we’re searching for opportunities. You may want to turn off the news. We’re just following what the market is telling us. We are now up substantially from the lows and only making progress back to all-time highs.
Last week the S&P 500 opened and faded Tuesday through Thursday but Fridays action was very positive.
The Wall Street Journal had a story of manufacturing companies closing, industries dying. After reading the story, it sounded more like these companies threw in the towel after the last recession. They were hanging on by ta thread and the coronavirus cut it.
This is also true to retail as well as restaurants. One of my favorite restaurants down the street, Grand Street Cafe, has been closed without any services since about March 15th. I hope they re-open but it doesn’t look good.
There’s going to be a host of good companies, great old friends and cool hangouts which will die and be gone forever.
As Warren Buffett says, when the tide goes out you can see whose swimming naked. We’ve been in a decade long advance. The economy in the last three to four years has been a Goldilocks story, right up until February 25th or so. Now the tide has gone out – like a tsunami
However, there will also be a host of new, innovative and exciting companies which will be born, survive and even thrive. They may change gears quickly like I would in my 2005 Mustang GT on a warm summer day with the convertible top dropped, when I’m feeling a bit giddy.
About five years ago I was enthused by a bright shiny object. That was NvestBates.
I still love that company but it was going to take a lot more than I had to make it work. I decided to let it go. I know many of you miss it too. Maybe it will return one day but I’ll have to be in a much different place.
We re-invented the Reed Financial Group and looked to a bigger, better more enthusiastic and fun future. We didn’t dawdle or lollygag. With the help of a new business coaching “idea partner” that I’ve told many of you about we became more innovative and found better ways to serve you and the new clients we will work with in the future.
I’ve created the Strategic Wealth Initiative as the financial planning focus for our company. It will also help new advisors, both associated specifically with the Reed Financial Group and as a member of our group as independent advisors which we help with back office services. Asset management will be handled by the Reed Financial Group and AtlanticMidwest Investment Research, which I also own and is the investment research arm.
As opposed to dying and hanging up the towel, we are re-invigorated with a bigger vision of the future in order to serve all of us in the best way possible.
This report is one of those new innovations. The WealthSentry method of asset management is another. The fun and informative private and semi-private events, the new webinars on the coronavirus, Career Financial Transitions and others as well as the to be rolled out Private Engagements are all part of that re-invention.
AmericasRetirementPlan.com will continue to serve clients that don’t meet our private client minimums and offer traditional, strategic asset allocation using mutual funds and ETF’s. We will also add corporate retirement plans to AmericasRetirementPlan.com starting next week.
I almost hate to say it among the destruction but we’re doing just fine. We’ll continue to make the WealthSentry ETF and WealthSentry Retire better and better as well as the financial planning and the services available through membership experience second to none – because there will be no one in this space – No One!
We are cautiously optimistic about the future. So much for not being enthusiastic to write today. Wishing you the best.
We’re watching – Opportunistically!
Investors will continue to monitor the impact of COVID-19 on the global economy, with focus turning to US and China retail trade, industrial output and inflation data; UK, Germany and Netherlands first-quarter GDP figures; Eurozone industrial production; Australia employment figures, business and consumer morale; and India inflation and industrial activity. Central banks in New Zealand and Mexico will be deciding on monetary policy.
Let’s Take a Look at the Charts
Past important levels of resistance making them support. There are still a few more before the party really gets started but it’s looking better and better. The S&P as well as the WealthSentry Retire have moved sideways for almost a month. Hopefully we’ll see more upside soon….. We’ll see.
The Nasdaq is still the strongest index, above important 50 and 200 day moving averages and added support levels.
Support for Europe moved higher this week but still could bounce around a bit here before making more moves one way or the other. Being above the 50 day and significantly below the 200 day moving average isn’t good but better than last week
Still below some levels of resistance but above critical support is good, but still weak.
WealthSentry ETF 55, 70 & 85: The portfolio is made up of several index based ETF’s which are designed to follow the market but may be moved to a defensive posture. At this juncture we are positioned 95% to target allocations
WealthSentry Low Beta Retire ID: Series is positioned among 35 to 45 names of companies which historically pay dividends and historically reflect lower beta and volatility with the potential to produce solid results. It is diversified over several industries including foods, household products, mature technology, retail, defense and others to provide growth at a reasonable price as well as income. Positioned 95% to target.
WealthSentry Equity Opportunistic Series is higher momentum stock portfolios which have the potential to advance more aggressively based on what we consider to be the best leader companies today. It is being developed and will be introduced in the future when appropriate
WealthSentry Equity portfolios are designed for intelligent growth with income in advancing markets and the ability to shift to Defensive Portfolios including higher cash positions in falling markets.
We’re in WealthSentry ADVANCE – watching cautiously opportunistically.