Challenging Old Highs!
We remain fully invested in stocks with accelerating earnings and sales, supported by strong accumulation patterns on price charts. Our portfolio is well-positioned to benefit from the unfolding, multi-year AI investment theme. Software—our largest sector allocation—continues to show leadership, notably due to its limited exposure to tariffs.
As some positions become extended in price, we plan to trim selectively and rotate capital into high-quality stocks that break out from sound technical bases. Much of the bad news has been absorbed, and investor attention is now focused on the major indexes as they challenge their old highs.
The S&P 500 and NASDAQ 100 are both less than 2% off their all-time highs. A breakout could be imminent, potentially followed by a period of consolidation or “back and fill” action before the next leg higher. The upcoming budget bill—expected to pass before July 4th—and a possible Fed rate cut aimed at stimulating growth could provide additional fuel for the rally.
Walmart’s near-record-high trading levels suggest that recession fears are overblown. Brokerage stocks (IAI) are attempting to break out, signaling strong underlying market health. The U.S. dollar remains in a downtrend, while gold is near its highs and silver has broken out of a five-year base—signs of shifting macro sentiment.
MAG7 stocks appear poised for breakouts alongside the major indexes. Junk bonds (JNK) continue to trade sideways, indicating sustained risk appetite among investors. Chinese equities (FXI) are performing well, suggesting that trade tensions may be easing. Meanwhile, 20-year Treasury bonds are hovering near support, potentially setting the stage for lower yields ahead.
The AI revolution is real—driving innovation, breakthroughs, and long-term economic transformation. We believe this will be a powerful force lifting equity markets in the years ahead.
While we stay vigilant for any unforeseen “black swan” events, the market has shown impressive resilience, trading comfortably above its 50- and 200-day moving averages. If bond market support levels hold and yields decline, it would be constructive for both the economy and equities.
AI is a disruptor and a game-changer. If we remain open-minded and embrace this wave of innovation, we believe it will lead to a more prosperous future. Grace and Peace to Everyone!
Watch List: AER, ALAB, APH, APP, AVGO, AXON, BTSG, CHWY, CLS, CRDO, CRS, CTAS, CVLT, CVNA, CYBR, EHC, GEV, MTZ, NFG, NWG, PLTR, PWR, ROAD, SFM, TGLS, UTI, WPM.
Let all that you do be done in love. 1 Corinthians 16:14
If you know anyone who would like to receive these updates or invest, please contact me.
Dexter Lyons, Portfolio Manager
337-983-0676, ChristianMoneyBlog.net
35 Years of Actively Managing Risk!