Monday, March 20, 2017

Thoughts {03.20.17}

All major US market indices posted new highs last week.  All of them are currently overbought by our work.  Note that being overbought should not be equated with believing that the next stage is down.  Markets can stay overbought or oversold for longer periods of time than most investors believe is possible.  Also stocks can correct by price {meaning markets decline}, time {meaning markets trade in a range until they work off their overbought condition} or a bit of both.  

Some interesting actions with international indices recently and this may become an area of discussion going forward.  These markets for the most part have not performed as well relative to the US during this bull cycle.  I'm wondering if that is beginning to change.  

"From the first quarter of 2009 through the end of the year 2016 – roughly the span of President Barack Obama’s administration – the United States of America added about $40 trillion in household wealth."

Go view this Infographic over at Visual  "There are over 1.1 billion websites on the internet, but the vast majority of all traffic actually goes to a very select list of them."

Oh and the Federal Reserve raised interest rates last week and investors cheered.  Most people would have assumed the opposite would have occurred but in this case I think it is an acknowledgement from the investment class that things really are getting better.

*We are long major US international indices via ETFs in client and personal accounts.

I will be out at a series of meetings tomorrow so the next post here will be Wednesday.