The market is open today. That will not prevent me from observing a moment of silence at 11:00am.
Stocks put in a positive performance over the past week. At the same time, bonds fell due to rising interest rates. Looking ahead, a portfolio balanced between stocks, bonds and cash would benefit from being overweight stocks, and holding as little cash as possible, as always.
Given that interest rates have begun to rise and that companies are beginning to report their quarterly results, I expect to experience volatility in the market. Investors will adjust their outlook and their valuation estimates to match the financial results, and stock prices will move accordingly. It appears, so far, that more companies have been successful than unsuccessful. The economic outlook seems to be relatively positive.
Comparing the asset classes that I track, US large-cap stocks (SPY) continue to have the best momentum, followed closely by Canadian large-caps (XIU). I will continue to own a single large-cap stock, rather than an ETF, because the momentum is even better. I’ll write about my trade on Wednesday.