It’s Still Not Over

This heightened period of volatility still has time to run. Until we get past the election and its possibly messy aftermath, it will be difficult for investors to make reasonable assessments about an investing future. Remember, we are also entering the earnings season for the third quarter. There are high expectations for these earnings. Hopefully, they will be fulfilled, but it is reasonable to expect there will be negative surprises.

As many followers of the Bull’s blog know, Riverplace Capital carefully follows the technical state of the U.S. stock market. It has been positive but has recently been slipping. Money flows are weaker, and many leadership stocks are not leading. These metrics may reaccelerate, but it is too early to tell. So here is one more metric that reflects near-term caution. There are others such as the weaker state of the luxury market, slipping auto sales, an east-coast port strike, and an expanding war in the Middle East.

Yes, there is always a measure of uncertainty in investing, but the current state is even more unsettled than usual. Time will clear up some of the political uncertainty. That will improve the investing atmosphere. In the meantime, treading cautiously still seems the best course. This fog will clear soon. Stay steady my friends.

-The Lonely Bull