Markets showing no signs of progress
There is really very little to write about the equity markets right now. As I’ve indicated recently, the only sectors making any headway over the past few months have been gold, energy, and bonds. For the past few weeks, even those sectors have weakened.
Below is a three-month chart comparing oil (black line), gold (blue line), bonds (red line) against the Nasdaq (gold line). Since early March, the only one that has made any headway is the Nasdaq. The others have all given up ground.
This is a perfect time for investors to remain parked on the sidelines. The risk from being invested in the markets right now outweighs the prospects for any significant reward.
F.S.