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Market & Portfolio Review: 06-02-20

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It Never Makes Sense at the Beginning

The common denominator among all bull markets throughout history is that they seem quite odd at the beginning. Whether it was the riots of 1991, the housing bust of 2008-2009, or the tech wreck of 2001-2003, bull markets sprang from each of these crises’ at the point of maximum pain and confusion. As we emerge from the COVID-19 crisis and deal with continued civil unrest, it’s important to remember that chaos and uncertainty sow the seeds of recovery as strong companies retool and go on offense at the expense of their weaker competitors.

As usual, we will do a quick performance review along with a discussion around attribution and the factors contributing and detracting from performance. Second, we are going to take a close look at the ongoing jobless claims data and what some of the trends both in the initial and continuing claims are hinting at about the state of the U.S. economy as we emerge from the COVID-19 shutdown. Along with our jobless claim analysis, we will run through the surprising impact of COVID-19 on U.S. disposable income and savings rates.

Additionally, we will measure the health of the current market bounce by assessing the sponsorship of the current market rally and whether breadth is continuing to expand or if there are signs of exhaustion as we enter the summer months. Lastly, we are going to measure investor positioning data to assess whether the continued rally in stock prices has dented investor pessimism or if the rally is only serving to increase resentment and disbelief, which are fantastic contrarian indicators.

The information here is presented by licensed professionals and not specific to any individual’s personal circumstances. Investment advisory services offered through LifePro Asset Management, LLC, a registered investment adviser. Investments involve risk and are not guaranteed. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy will be profitable or equal any historical performance. Discussion of any specific stocks are based on objective, non-performance criteria and such discussion neither serves as a recommendation nor as the receipt of, or a substitute for, personalized advice. Due to various factors, including changing market conditions, such discussion of positions and/or recommendations may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Advisor, or from any other investment professional. Forward-looking statements such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” are based on management’s views and assumptions at the time such statements were originally made and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. LifePro Asset Management does not undertake any obligation to correct or update any forward-looking statements on the LPAM Site.

Robert Reaburn

Robert Reaburn

Robert Reaburn is the Executive Vice President and Head of Wealth Management at LifePro Asset Management. He works with financial advisors building diverse financial portfolios that best empower their clients with a lifetime of financial security.

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