Looking at what is causing the market to be on its current trend and showing an update on our current All-Weather scoring with Wealth E&P
April 19, 2021
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the markets this past week.
I'm excited to tell you that, once again, we finished with all-time highs for the week in the market. I’m going to give you a couple of insights into what we're seeing that is causing it.
We’ve been talking for a while about how there is so much extra cash in the system. So, here it is: all the extra money has been printed and added to the system and given to individuals, businesses, or education across the board. Even though the word “billion” is on this chart, we’ve really got to replace it with “trillion”. Because it is in the 1000s, it is actually over $5 trillion that has been added to the system. This has to go somewhere, so it is going into spending, which helps boost the economy and therefore the market.
I want to give you a little insight into our All-Weather scoring, which is what we use to give our forecast into what we see for the markets right now in four areas.
- Mojena, which is our economic signal that looks at over 20 areas in the economy, is at almost a 92 out of 100. It gives us a 10 out of 10 for that one.
- Rochdale, which looks at 20 indicators like the economy, fundamentals, and technical indicators, is across the board at a 185 out of 200. This is excellent, and also gives us a 10 out of 10.
- AlphaDroid is our artificial intelligence signal. Any time that number is above 0, that is a good sign that we want to be aggressive. If that number is above 1, that is excellent, once again.
- Sherman can be 0, 1, 2, or 3. This is a 3 out of 3 right now.
All signs are positive; these are all looking at different indicators and different areas of the market, and it still gives us a 40 out of 40. It is time to be aggressive still, and until next week, just enjoy the ride!
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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