Weekly Hotline

Friday, November 12, 2021

Equities cooled off this week alongside hotter-than-expected inflation. Even so, the S&P 500 is near all-time highs and valuations remain exceedingly expensive, as the S&P 500 Price/Sales ratio has reached a record high.

This week’s economic reports focused on surging prices and its effects. The Core Consumer Price Index, which excludes volatile food and energy prices, soared to another 30-year high of 4.6%, as price increases broadened out across the economy in October. These widespread inflationary pressures are hampering optimism, as both Consumer Sentiment and NFIB Small Business Optimism dropped in their latest readings.

Looking at our technical indicators, the InvesTech Canary (in the coal mine) Index is continuing to hold above its critical support levels thanks to yet another wave of retail investor speculation.

There are no changes to the Model Fund Portfolio this week, which remains 74% invested with a moderately defensive 26% cash buffer.

Join James Stack at the 2022 New Orleans Investment Conference!
October 12-15

James Stack will be a keynote speaker at the New Orleans Investment Conference next month.  Register now to secure your spot and hear his general session address on Saturday, “Monetary Showdown – Fasten Your Seat Belts.” Jim will also be joining a group of experts on the “Booms, Busts & Bubbles” panel on Friday.  This is an event you won’t want to miss!

Visit this special link for more information and mention “InvesTech” when you register.
We look forward to seeing you there!

The next Weekly Hotline update will be next Friday after 12:30 PM ET

This Week’s Market Insights

Featured InvesTech Indicators

Model Fund Portfolio

Friday, November 12, 2021

There are no changes to the Model Fund Portfolio this week.

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The next Market Letter will be published on the 3rd Friday of the month by 3:00 PM ET