While many investors have been focused on arbitrary lagging indicators like the economy, we rather keep our attention on reality.
We're grown adults. We don't need bedtime stories to go to sleep at night. So fairytales about recessions, or inflations, or bidens are just not anything we're interested in.
We get paid to sell things at higher prices than where we buy them.
That bet has paid off handsomely for us and anyone listening.
So as investors we all have a choice. Do we bet that the correlation is all of a sudden going to change tomorrow? Or do we bet that things just remain the same?
Here is the US Dollar Index consolidating in what appears to be a classic continuation pattern, within an ongoing downtrend:
We held our May Monthly Strategy Session last Monday night. Premium Members can access and rewatch it here.
Non-members can get a quick recap of the call simply by reading this post each month.
By focusing on long-term, monthly charts, the idea is to take a step back and put things into the context of their structural trends. This is easily one of our most valuable exercises as it forces us to put aside the day-to-day noise and simply examine markets from a “big-picture” point of view.
With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.
As it turns out, markets can remain solvent longer than you can remain irrational.
Stocks continue to catch a bid. This is despite any so-called "banking crisis" or even the "upcoming recession" that I've been hearing about for so long.
Markets remain solvent as the major US Large-cap Indexes keep pushing up against new highs.