OK, class. Here are some homework assignments that you should complete over the weekend. These assignments do count toward your final grades & investment performance – so its in your best interest to complete them.
Assignment #1: Read the upcoming strategy update
If you subscribe to our “ValueTrend update” newsletter, you will be getting the new edition in the coming days. If you don’t get the newsletter, subscribe by clicking here to ensure you get both the blog and the newsletter in your mailbox regularly. The VT update newsletter is published about once a month.
The upcoming issue will offer a timely discussion that you won’t want to miss. Especially as the SPX continues to flirt with 4100, moving above then below that level. Will the market hold its recent gains, or will it break? It’s clear that the recent breakout is no sure thing.
So….. what’s a poor lad or lassie to do? We’ll be looking at our way of addressing this dilemma in the newsletter.
Assignment #2: Review the energy outlook video
Regular readers know that I have been suggesting that inflation is likely to remain high…aka: we expect it to come down, but not to 2%! You may also know that ValueTrend sold out of materials and energy in early 2022 after making nice gains through 2021. The timing of our trades was good for you if you followed along (which is why you need to subscribe to the blogs and newsletters).
Further, you may be aware that we’ve been stepping back into materials and energy, having witnessed early-stage recovery patterns. The appeal of the energy trade (and materials) lies within their tendency to display less market co-relation. That, and their upside potential if inflation does in fact remain with us longer than is hoped. This will be one of the topics discussed in the upcoming newsletter. For now, I recommend you take a look at my recent video on the energy trade –
Assignment # 3: Reality check
A Florida PM quoted on the potential for a recession:
“Unemployment can only go one way from here. Fed hikes will have a lag effect, leading to credit card defaults and housing declines. When the recession comes, a lot of people are going to be surprised – which is crazy!”
Don’t believe rates will stay high for much longer? Perhaps you should give Fed Chair Bainard a call and convince him otherwise. Here’s an excerpt from his speech this week:
Assignment #4: Monday March 6th – note for your calendar
I’ll be on BNN for the 12:00 noon MarketCall show on Monday March 6th. Be there, or be square.
That’s all for now class. I expect a full report on my desk (submit comments below, please) after you have completed your assignments. As always, if you are a subscriber receiving this blog via your email…. please DO NOT HIT REPLY TO POST A COMMENT. Please go to the website and post under the comment section. It helps other readers to hear your thoughts, and it helps the Google rankings of this blog (especially with the dreaded Bill c-11 nastiness coming).