Its late July and the slow season for markets may be settling in but so far its been an astonishing year. The stock market this year reminds me of The Terminator it just never stops moving higher and all sell offs so far have been very minor representing a brief chance to add to positions. Eventually the rally will end but anyone’s guess is as good as mine as for when it will be.
The two websites that we use for determining our equity exposure:
recessionalert.com and nospinforcast.com are both in agreement that no recession is in site for at least nine months from now. So, with that information we remain fully invested in stocks. Expanding economies are generally a negative for bonds and that has been the case for Treasuries as well as for gold. It appears markets are moving back to their normal pre-2008 levels and investors who’ve been under a rock the whole time are putting money back to work again.
Trading for us has slowed down as well which I’m grateful for. Our models are now set in stone and other than very minor tweaks I don’t envision any changes to them as they have been astonishingly effective.
We do have a few recent buys:
American Electric Technologies AETI
Penford Corp PENX
National Technical Systems NTSC
all three score at the top of our ranking system
sold from portfolios are
Mutual First Financial MFSF
Netsol Technologies
Brad Pappas
RMHI is long all positions