You are looking at my screen as I look at the SPY to investigate how the market is generally looking right now.
Eyes wide open. There is a TON of money invested in the markets and pumped into our economy right now. Is the money leaving or is it staying?
Look at this beautiful trend line for the SPY. Higher highs. Higher lows. If you are a long-term investor and a Bull like me, you are loving what you are seeing *generally* right now. Looks like money is sticking around— just rotating in healthy ways. From Growth to Value stocks. From Stay-at-home to actual Home & Real Estate and Bounce-back plays. Sector and cyclical rotations are happening gracefully with ebb and flow while some sub markets are just up and range bound like Small Caps right now.
Investor confidence seems stable as investors (institutional and individual) seem to be keeping their assets in play and participating in the long term growth of the markets.
I always keep a real close eye on how Copper, Industrial Metals, and Semiconductor markets are doing. They are my preferred leading indicators for the global economy.
I’m also watchful of Inflation staying “transitory” and any changes in the Fed’s QE strategy.
Stay long-term in your deployment. Stay focused on keeping eyes wide open at all time on variety of markets and economies. The winds can change and the winds do change. Sometimes unexpectedly and sometimes in gusts. But for now … enjoy the light breeze around us in the bullish direction — while it lasts.
Blog by Payel Farasat, MScFA, CLC, CHC, CPH | CIO | Founder/Managing Director | Master Coach