Portfolio watch weekly update-June 19, 2017.

       

Your Portfolio Watch Weekly Update – April 04, 2016

Weekly Market Update by PLP Advisors

Once again last week, markets were more mixed with stocks rising slightly and metals markets falling.

The Dow Jones Industrial Average rose .53% while the Standard and Poor’s 500 advanced .06%.  Gold fell .90% while silver, the more volatile metal fell nearly 3%.
The rise in stocks and the decline in metals saw the Dow to Gold ratio rise to more than 17.  As long time readers of “Portfolio Watch” know, we are ultimately expecting this ratio to reach a level of 1.
Chart One below is a chart of an exchange traded fund that attempts to track the price performance of the Dow Jones Industrial Average.  Notice from the two trend lines drawn on this weekly price chart that the Dow is in a strong upward price trend.
The shallower uptrend line from the market bottom shows the Dow could correct in price to approximately the 18,000 range and still be considered to be in a technical uptrend.
The steeper uptrend line drawn on the chart from early 2016, shows that stocks could correct to under the 20,000 level and still be in a technical uptrend.
Bottom line is this, if stocks simply revert to either of these uptrend lines, stocks will remain in a technical uptrend but will decline in price from 7% to 12%.
Chart Two is a chart that shows the price performance of an exchange traded fund with the investment objective of tracking the price of gold.
Notice from the two trend lines drawn on the chart that gold remains in a technical downtrend from late 2011 to the present, although gold prices are close to breaking out of this downtrend to the upside.
On the same chart there is an uptrend line drawn from late 2016 to the present.  Our trend following indicators once again have gold in an uptrend so it’s our position at this time that gold could potentially move higher from here.
US Government Bonds rallied again last week with the yield on the 30-Year bond falling to 2.78%.
The US Dollar Index had the US Dollar remaining fairly constant last week at 97.16.
As we noted here, in the pages of “Portfolio Watch”, the US Dollar broke through a long term uptrend line a few weeks ago as observed on Chart Three.
Observe on Chart Three that this uptrend line began in mid-2014 and was penetrated to the downside just about one month ago.
As we stated in last week’s “Portfolio Watch” we believe that stocks, bonds, real estate and the US Dollar are all in price bubbles that will collapse at some future date.  At this juncture, it’s our belief that real estate may lead the decline followed soon after by stocks.  Should that happen, a temporary boom in bonds could occur which will create, in our view, the shorting opportunity of a decade, maybe a life time as yields on bonds will have nowhere to go but up from that point.
The cracks may be beginning to show in the real estate market.  May new residential building permits issues were the lowest in more than 12 months according to the Department of Housing and Urban Development.  That decline in spite of nearly record low interest rates and mortgage availability.
This stat coupled with the fact that existing home sales fell significantly in April is worthy of noting.  We believe that selling real estate at this point in time may be prudent and holding off on purchases of real estate may also prove to be a smart strategy.
The real estate market is beginning to look shaky as does the stock market as we discussed in last week’s “Portfolio Watch”.
This week we once again repeat our advice:  consider taking steps now to protect your open positions and consider using absolute returns type investment strategies.
Due to numerous requests, we are holding another New Retirement Rules class on July 15.  It will be held at the East Beltline campus of Western Michigan University beginning at 9:00 AM and concluding at 2:30 PM.
For more information or to register, visit www.NewRetirementRules.com.
The class is open to first time attendees only due to space limitations.  Thank you for your cooperation.
Make it a great week.


Source: http://everythingfinancialmedia.com/portfolio-watch/your-portfolio-watch-weekly-update

Comments

Post a Comment

Popular posts from this blog

How Smart People Plan Accordingly For Their Retirement.

Do you know anyone who is considering retirement and do they have a healthy nest egg? How did they achieve their nest egg? They are not financially smart like Warren Buffett or hold the secret solution to retiring comfortably. They did not play the Russian roulette with the stock market or watch it every single day. People who are ready for retirement constantly make contribution towards their investment and saving plans for every month. They are very responsible with their spending and intentional savers in their daily lives. They use the help of professional financial advisor to achieve their goals. The Secret of Saving for Retirement Successfully are listed below: 1). Use your biggest wealth building tool to your financial advantage. 2). They keep their expenses low. 3). They invest 15% of their income. 4).  They do not fund any expenses without referring to their budget. 5).  They meet routinely with their investing professional. 6).  Have a plan and update ...
Read more

The Mistakes We Make everyday About Money.

Here are some of the mistakes we make everyday: It can be cars that we cannot afford, personal loans or house mortgage causing people to file bankruptcy. Here are some money myths that will keep you broke and not compete in today's society. So, why are people still making money mistakes and not changing their ways. Most people are still mismanaging their money and still blaming the society for not setting a law. Please, do not buy into the society popular money myths. Here are some myths that are bad for your money. 1). Debt is a tool. 2). Car payments are a way of life. 3). Loaning money to your family show you care. 4). You cannot go to college without student loans. 5). You can make enough money to catch-up on your retirement. 6). You already understand spending your money, so you do not need a budget. 
Read more

Money and Relationship.

Do you think that most couples argument is about money? The recent survey shows that 63% of couples think that their significant other overspends in many ways, according to TD bank. Money is the leading cause of fight and divorce in North America. Those little fights can cause serious marital problems as time goes on based on the National Council on Family Relations. It is extremely important to figure out how to argue with your significant other in a productive way. In addition, to cultivate a solid marriage and relationship, it is essential for couples to take time to work on their relationship and money. Marriage brings people from different backgrounds and different life experiences together, if they can succeed they need to work on their money and relationship daily. Whether couples realize it or not, money issues can cause havoc in relationship and lead to a fail marriage. The Seven Area of Conflict in Marriages: 1). Separate but equal. 2). Lifestyles. 3). Personality Diff...
Read more