Checking out one of Wealth E&P’s favorite indicators for determining the overall health of the market
March 22, 2021
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we give you our gauge of current market conditions.
Last week was not the best week in the market, with all indices down just a little bit. However, Monday is off to a great start, and we are already in “green” territory. We want to give you a little bit of insight into some of the indicators we use to put together our All-Weather score, which is still 40 out of 40 and looking very optimistic. We use about 80 different indicators across multiple sources, and we have found City National Rochdale to be a very consistent, reliable provider.
I am going to show you a chart from a year ago when the pandemic was really hitting; this looks at 20 different indicators:
You can see lots of red, not surprisingly, consumer spending was struggling, political or geo-political risk was very poor at the time, and money supply was in trouble. Obviously, like I said, none of this was too surprising.
Fast-forward now to a year later, there is lots of green; in particular, improvement in the yield curve (which has stabilized) and fiscal policy.
With all the extra money the government is pouring into the system, as well as consumer spending and corporate earnings, everything is up. Again, it is very sunny outside right now. It is a good time to be aggressive, so let’s take advantage while we can.
If you have any questions for us about the financial markets, please feel free to reach out. Otherwise, stay tuned for our next Market Minute next week!
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