“Climbing a wall of worry” is the answer to the question “How is the market doing lately?”. In spite of all the negative news, investors continue to seek better returns via investing in the stock market. Thanks to our disciplined market analysis process, our official signal changed to a green light (see the July 12th comments below) and brilliantly caught the recent rally in equities. It has been said that “money goes where it is treated best” and our disciplined mathematical process of “tracking the footprints of money” has caused us to be on the right side of the markets major trend again, even while the newsseemed so scary.
Today’s political “revelations” hardly caused the market to miss a beat. Once again proving the axiom “It’s the economy, stupid” that drives the stock market and not sensational headlines out of Washington, or anywhere else for that matter.
Corporate earnings are robust, employment is strong, and inflation is still tame. Yet while the investment skies are currently blue, we will keep our eyes on the horizon for storm clouds (signs of weakness) that may develop in the math of the market, via weakening technical internals. For now, stay with the trend and keep the faith. Have a Triumphant day! ®