Despite a strong end to the week, this short-term move higher is not changing our overall view on the market. Equities are facing challenging headwinds that should contain upside potential. Rising interest rates, the delayed economic impact of those rate hikes, job losses, tightening liquidity around the globe, negative earnings revisions, poor relative strength underlying equities. We could keep going.
As a result, we still believe, at the very best, stocks are stuck in a trading range over the coming weeks, possibly months. And that keeps us cautious and hesitant to place any large bets at this point. We realize that’s not exciting, but in times like these we’re okay with being dull and boring, and safe.
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.