Weekly Strategy Update…
I am thinking that maybe a weekly update on thinking might be good every Tuesday morning during the summer, maybe longer. This approach can take account of our Climate Tech Model’s macro positioning and include micro items from the prior weekend. This keeps in mind the basic drivers of Climate Tech investing, floods, heat, fires, and wind.
So here is my take today.
Stocks: The current upward wave that started on May 4th is still in place. The upside breakout of the Multiplier Index on 5/24 is intact. SPX support will be found in 5865 area on any Tariff related turmoil.
Bonds: Bottom found on May 22nd is the baseline. Recession concerns and lower interest rates are the prime drivers.
Dollar: Bessent wants a weak dollar and the world is fine with that as business moves to other parts of the world.
Interesting comment here from Market Screener that I saw this morning:
“For market spectators, though, turmoil has become a kind of entertainment, which doesn’t prevent indices from rising. The most telling detail may be Goldman Sachs’s upgrade of its twelve-month S&P 500 forecast, to 6,900 from 6,500, justified by—of all things—the expectation of rate cuts spurred by the very volatility that tariff brinkmanship produces. In other words, the market has learned to monetize the President’s bluff. Each threat weakens global growth just enough to beg for monetary loosening, and each hint of dovishness lures the index to fresh highs. It is an ingenious if perverse arbitrage, and it depends on the belief that the show will never end in actual calamity.”
Our Trilogy of Special Reports for 2025 are always available, links here.
2025 Political Backstory…Feb. 8, 2025 – Eureka Perspectives
Leave a Reply