Market Update: 06-29-18

The Issachar Fund (LIONX) is 100% in CASH as of Thursday, June 28, 2018.  All LIONX positions hit sell signals this week.  I followed my sell disciplines and parked the proceeds in a money market until the next opportunity.  Trade War fears, reduced liquidity and slower global growth seem to be the culprits behind this week’s market correction.  Whatever the reason, market risk is elevated, and caution is advised so keep an eye on the exit if you have not already reduced or sold your positions.  I would not ever advise sticking your head in the sand and ignoring risk.  Risk can be managed but managing return is very challenging to say the least.  Setting sell stops and sticking to them could prove to be very productive in the long-run.

I am at a point in my life where life-changing losses is simply not an option.  As a result, I work very hard at managing the risk by hedging/selling positions in an effort to minimize the loss and letting my profits run in an effort maximize the gain.  I have found that there are times when it is fairly easy to make money in the market and there are times when it is difficult.  Currently, I am finding that it is difficult to make and keep money in the stock market.  I am optimistic that the Trump Tax Cuts and Deregulation will trickle down in to a better than expected earnings season in July and stock prices will break out of this narrowing 2018 trading range.

Oil prices are at a 3 ½ year high but oil services are not following suit.  Transportation stocks are falling as their fuel costs are rapidly rising.  Rising Fed rates is not helping home buyers as their monthly notes creep higher.  US Treasury yields are relatively high compared to global yields, and the dollar is relatively stronger against major currencies.  Emerging Markets are being hurt by a stronger dollar making their dollar denominated debt more expensive to service.  Gold is near a 6-month low and still trending lower.  Healthcare stocks are in sell mode due to a recent Trump negotiation that increased competition across state lines.  Competition may be good for the consumer but now healthcare providers may lose the favorable deal they made in support of Obamacare.  Europe is struggling with open boarder policies.  Chinese stocks are in a steep down-trend as they adjust to higher export tariffs.  Utilities are under accumulation as money flows out of Tech (risk) into a presumably safer play in utilities.  Junk bonds have rolled over and are trending lower indicating that the appetite for risk may be declining.

Bottom Line:
Caution flags are flying so buyer beware and keep some powder dry for a rainy day.  I hope you have Safe and Blessed 4th of July week!  The Lyons family plans to enjoy the sunny white sandy beaches of Destin, FL.

Always Remember: No one cares more about Your Money than You Do!

If you want me to manage Your IRA like I manage mine, please call me!

(Portfolio holdings are subject to change at any time and should not be considered investment advice. There is no guarantee that any investment will achieve its objectives, generate positive returns or avoid losses.)

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Dexter Lyons