Current Outlook
"July 2017"
95 months and counting ...
As the market closed on Friday, it had been exactly one year since
the last follow-through event and the rally had managed to chalk up a
run of 95 months.
Other than the expectations caused by the Trump election and his
agenda, the economy is at best just "muddling-through" with conflicting
economic data even using the Ministry of Truth reporting. If one looks
at the raw data, a similar pattern emerges but it definitely points that
the market is at the upper-end of historical valuations.
Using our stock scans developed over the past 50 years, we find it
very difficult to locate companies that have the potential to make
significant gains over a long period of time. Outside of the FAANGNOSH
stocks which have been providing a significant portion of the markets
upward movement, the rest of the market action has been mediocre to say
the least.
It thus suggests that prudent investors protect their gains and be
cautious about new commitments on the long side.
Fred Richards
July 1, 2017
