Weekly Market Update for June 2, 2023, from DeWayne Hall: The US Stock Market

Name: Good Life Asset Strategies
Price range: $$$

After going slightly off the rails last week, we’ll try to control our ADD this week and focus on the US stock market. And that’s our advice to you. Stay focused on the important things.

Here we break down what we consider important:

In the near-term (the next month or so), we believe the indexes can still go higher. But any upside should be limited to just a few more percentage points. So buyer beware.
The stock market is being led by a dozen stocks. Really more like five. That's it. The rest are just trying to hang on.
Sales and earnings eventually are the driver of US stock market prices. Everything else is just noise. And sales and earnings forecasts are quietly being lowered by the great majority of companies, and that's not going to slow down anytime soon.
There is a euphoria in the AI space that reminds us of the Dot-com bubble at the turn of the century, and the bitcoin-mania of recent years. People are always looking for the latest, greatest thing that is too good to be true. Right now AI is that shiny new object. Chase the sexy AI names at your own peril.
There are a few opportunities to create a little alpha out there. The operative words in the previous sentence are "few" and "little.” We think trying to thread that alpha needle may be a sucker’s play.
Risk is elevated, and reward is diminished right now, and until that changes, cash and cash equivalents remain the best course.

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.