This past week, we held our monthly review with our Boston consultants of the technical condition of various investment markets. We were particularly interested on money flows. The technical work shows that money continues to flow into the U.S. stock market.
These flows went positive six months ago and have not reversed.
Certain sectors show promising signs of bottoming. These include a few that have been in correction, such as industrials, energy, certain materials and maybe even discretionary. Technology, financials, and transports remain strong. Healthcare, staples and utilities are showing signs of breaking down and perhaps entering a corrective period.
On a macro basis, certain emerging markets seem to have bottomed from a three year correction. China looks especially promising. Europe also looks to be bottoming after a period of underperformance.
The technical picture fits with what we are seeing from a fundamental basis. This concurrence gives us more confidence in our observations. We believe we are well positioned for the remainder of this year and expect good results.
Stay steady, my friends.
the Lonely Bull