“I feel a change comin’ on” Bob Dylan
These are broad areas that have been getting stronger
- Mexico
- Greece
- France
These are broad areas that have been getting weaker
- Coffee
- Palladium
- Natural Gas
Source: Dorsey Wright and Assoc./Thomson Reuters
(See complete List by clicking here: Market Trends)
It is my belief that in the financial markets, when we see big periods of volatility, money is in motion; it’s moving from one area of the market to another. These transitions cause disruptions and trends develop. Downtrends emerge in the areas the money is moving from and uptrends emerge in the areas to which money is moving. 2022 was definitely a year of volatility…i.e. money in motion.
During this time, we have heard a continuous monologue coming from the Fed regarding “Quantitative Tightening.” The Fed has been raising interest rates and pulling excess funds out of the economy. While they have been doing that something strange has been happening. As I have been observing the areas of the world getting stronger, we are seeing areas top the list that haven’t been there in a long while. These include Mexico, Greece and France. Yes, I said France.
This is exactly the opposite of what happened about 10 years ago. Back then, the Fed was talking about “Quantitative Easing”….keeping interest rates super low and pumping extra funds into the economy. Over the ensuing 9 years U.S. Stocks rose the top of the “stronger areas” and vastly outperformed the international counterparts.*
The Fed is pursuing a different outcome than the last 10 years. And, we are seeing different areas of strength being identified. This makes me very interested in looking at various nations around the world. Right now, I am looking at a number of countries who might possess a better investment outlook than the U.S.
As a side note, by watching almost 200 different markets around the world, it does allow me to see when major changes occur that warrant a closer look. So, that’s what I am going to be doing. Vive La France!!
As always, I enjoy interacting with you! Feel free to contact me with any thoughts and questions. You can email or call me…my phone is with me all the time. I look forward to speaking with you soon!
Michael
Michael S. Lewis
President, Wealth Manager
Anchor Wealth Management
358 NW 1st Ave, Suite 2, Canby OR 97013
(503) 910-1687
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Securities and advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.
- 7/1/2013-12/27/2022 (S&P 500 (SPY) was up approx. 137% while the EAFE (EFA) was up 9.34%) source: Yahoo Finance.
Content in this material is for general information only and not intended to provide specific advice or recommendation for any individual. All performance referenced is historical and is no guarantee of future results. All investing involves risk including loss of principal. No strategy assures success or protects against loss.