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Believe it or not, U.S. stocks have taken a turn for the better. In spite of all the negative headlines the past month, equities are showing some strength.
Yes, we know we’ve been saying the market is heading lower. And we still believe that. In fact, we think the major indexes may take out their lows of last year in the back half of this year.
But as we all had our eyes on the banking crisis the past few weeks, the Fed has quietly started printing cash again, flooding the market with liquidity, and in turn providing underlying strength to the stock market, at least in the near term.
Of course, we don’t like this new form of quantitative easing (QE). Never have, never will. But the Fed doesn’t care what we like or what we don’t like. Besides, our job isn’t to pontificate about a central banking system run amok. Our job is to make money for ourselves and our clients. So earlier this week we began putting some money to work buying stocks and will continue to do so as long as the Fed magically makes money appear.
How far this round of quantitative easing goes no one knows. As we’ve said, we don’t think in any way, shape, or form that this is the beginning of a new bull market. But in the short-term, meaning the next few weeks, maybe a month or two tops, we wouldn’t be surprised if stocks continue higher. We can even see the S&P 500 possibly rub up against 4,300, or another 6% higher from here. So for now, let’s get it while the getting’s good before the big, bad bear reemerges.
The views expressed represent the opinion of Good Life Asset Strategies, LLC. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness.
Good Life Asset Strategies, LLC is a registered investment advisor located in Fort Worth, Texas. Good Life Asset Strategies, LLC and its representatives are in compliance with the current registration and notice filing requirements imposed upon registered investment advisors by those states within which the firm maintains clients.
All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. Such an offer can only be made in the states that Good Life Asset Strategies, LLC is either registered or a notice filer or an exemption from registration is available under the securities laws or other laws.