December 4, 2025
By Peter Bower
The Bull and his partners do not rely on technicals for their investment process exclusively, but they are a helpful guide, especially in the near term. Presently, the overall stock market is still on a buy signal according to the money flow model we follow. Additionally, we see some shifts in sectors that are showing good momentum. Mid-cap stock has recently shown a buy signal after being on the sidelines for most of this year.
Within the S&P 500 sectors, there have been shifts. Large-cap growth stocks have lost momentum and leadership, while cyclical, financial, and healthcare stocks have come to the forefront. This shift looks to be durable. In general, there has been a broadening, once again, in participation in the uptrend. This market has waffled between narrowing and broadening several times this year.
With lower interest rates on their way, some tax relief next year, and the stimulus from trillion-dollar deficits, it would be difficult to be negative on owning stocks. Longer term, artificial intelligence promises to drive productivity increases. There are plenty of reasons to remain positive. Stay steady my friends.
-The Lonely Bull
