Hey friends. This stock market continues to pursue new record highs. As a backdrop, we are approaching a presidential election year. We have a Fed that may or may not accommodate the markets with hoped-for dovish interest rate policy going forward. We face uncertainty over what kind (if any) of tariff deal comes with China and how it will impact the markets.

Gold has been trending much higher over recent months probably due to a myriad of factors. The economy is humming along based on earnings reports and based on economic reports, especially with regard to the jobs numbers. Yet the ramp in gold prices may be at least in part signaling a move to a perceived safe haven. It seems that the stock market is struggling a bit with having no obvious reason to go down and at the same time recognizing there are factors that could change the landscape quickly (like those backdrop factors I mentioned in the initial paragraph).

Choosing individual stocks at this time requires heightened scrutiny as we are experiencing a “risk-on” environment at the moment in terms of investor behavior. My book “Choose Stocks Wisely” communicates a balance sheet message that is relevant to this backdrop in my view.

See you next time.