Good Evening, The market broke out to new highs led by tech today. Positive seasonality and fund managers loading up on new positions for next year led the drive higher. Of course the bears were out there saying the market is too overheated. Don’t get me wrong, I’m not a permabull. I’ll be bearish when it is time to be bearish. However, for a myriad of reasons I believe this market can go higher. Just take a look at the earnings. They are what really drives the market. When companies make more money they make become worth more. As we have discussed in the past the bears keep whining about the P/E that is what? 18 or so right now for the S&P 500. It is true that is higher than the average over the years which I believe is around 14 or so. But consider this, companies are making more money here in the US as well as internationally. For one thing, this is the first time I can remember that there has been a concurrent world wide bull market. Folks, this is a world economy and many US companies are benefiting from international trade. So you think this can’t go on?? Consider that current earnings are expected to to be up in the 7-8 percent range and that’s better than expected. Just today Goldman Sachs raised its earnings estimate for S&P 500 companies in 2018 and 2019 based on expectations of U.S. corporate tax reform, above-trend global and U.S. economic growth and slowly rising interest rates from a low base. There it is. Somebody other than me is saying the same thing!! So why listen to the serial top callers? Quit while you are ahead? Bury your profits in the sand? I don’t think so! I tell you what I’m going to do. Rather than worry about whether we may see a market top soon, I am focused on how I can profit from the action that is occurring in front of my right now!!! Remember what we talked about? The worries of the day are sufficient. I don’t want to repeat myself but some of you are a lot younger than I am and your going to be managing money long after I’m a memory so I want you to learn this lesson right now. Sure the market is going to go down someday and when it does it will be a surprise to everyone. When it happens you’ll lose a little profit and get out. So what!!!!! That is as long as you don’t listen to the bears and make the profit now while the market is rising. There will be rises and dips to be sure but I can’t see a reason that this market will fall apart in the near future. Yep, it’s done it in the past, but this is not the past. This is new territory and you must treat everyday exactly that way. Who’s to say your not in the middle of the greatest bull market every recorded? And don’t forget, God is with you should it rise or fall and what father doesn’t want the best for His children?

The days trading left us with the following results: Our TSP allotment gained another +0.89% and it’s just getting started! For comparison, the Dow was up +0.69%, the Nasdaq +1.06%, and the S&P 500 +0.65%. Praise God for another good day. Is there any doubt that He is with us?

The days action left us with the following signals: C-Neutral, S-Buy, I-Neutral, F-Neutral. We are currently invested at 100/S. Our allocation is now +16.15% not including the days gains. Here are the latest posted results:

God bless, Scott 

 

 ***Just a reminder that you can review the performance of our allocation at the Web Site TSPTALK.com in the autotracker section under the screen name KyFan1.

 

 

I produce and publish this blog as both a ministry and for the benefit of any Federal Government Employee. This is done to offer you some guidance as to how to approach your retirement more financially successful. When it is time for you to retire, I recommend you utilize the services of a Professional Money Manager, who works with a reputable investment firm. He understands the guidance you have already received and he can manage your savings assets utilizing a more advanced investment program into the future. 

 

If you would like to receive more information about this introduction, please feel free to contact me at  [email protected].