Many investors and the financial media tend to get bogged down by volatility and “noise” in economic data releases. We prefer to look at a handful of big-picture indicators that have stood the test of time. And these indicators point to continued strength in the economy.
With this year’s fourth quarter around the corner, we maintain a positive view on the miners. The majority of our preferred global macro indicators are holding well, and the mining sector still trades at a deep discount to the market. Metal prices already show strength, suggesting corporate earnings should soon follow.
While the broader market looks strong on the surface, underlying trends have weakened considerably over the past six months. Accordingly, we believe a 5 to 10 percent pullback in the S&P 500 is likely in the final months of 2017. That correction will serve as an opportunity to add stocks to the Wealth Builders Portfolio.
Passive investment has had a dramatic effect on bond funds. And while that’s meant higher prices and lower yields for many, four in our coverage universe offer solid management, performance, and income.
Over the past couple weeks, the entire Lifelong Income Portfolio reported second-quarter numbers and management teams delivered guidance for the rest of the year. That makes now an ideal time to evaluate where each of our recommended companies stands.
While the risks of today’s low-volatility stock market are clear, we continue to believe the next sell-off in the broader market will be a correction, not the beginning of a new bear market. Look for a rotation out of the growth-oriented fare and into cyclical and value groups.
DISCLAIMER: Capitalist Times, LLC is a publisher of financial news and opinions and NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters or on our website(s) should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. As a condition to accessing Capitalist Times materials and websites, you agree to our Terms and Conditions of Use, available here including without limitation all disclaimers of warranties and limitations on liability contained therein. Owners, employees and writers may hold positions in the securities that are discussed in our newsletters or on our website.