Astute Strategist Blog

Market Context
Happy Canada Day and 4th of July,

Brexit, China slowdown, Trump imposes sanctions and here we are less than 2% from the all-time highs in the markets. During the week the S&P 500 saw a low of 2965 and a high 0f 3007, that is a move for sure but yet we have not been able to close the week above 3020. Last week I mentioned that the number I am looking for in the S&P 500 was a weekly close between 3018-3020 for us to get really bullish and yet again the markets did not get there, settling at 2986. Where to go from here? That fact remains that capital inflows will continue to go into the market as there is simply no other place to put money, even bitcoin is struggling to break out to the upside and though that is likely to be short-lived, in my humble opinion the same applies to the markets. It is very likely that we see further sideways price action while the US and China continue to battle each other, not to mention the further delays that British Prime Minister Boris Johnson requests to get the UK out of the EU.

The simple truth is facts are facts and numbers are as factual as they come and while I remain very bullish over the long term, we are likely to see more volatility and sideways price action than anything else as far as the immediate future is concerned. This is where the use of options allows the investor to be as versatile and nimble as necessary, Being long or owning a stock like Apple that typically outperforms the indexes can the kind of shares you want to hold onto. When able to protect downside exposure while not forsaking the shares is the type of path that leads to wealth creation. As 2018 ended Apple’s stock price was $157 per share, here we are 10.5 months later and the stock is up 50%. Click “Become An Astute Insider” and join our weekly class, where we show you exactly how to create wealth such as in the example with Apple. There are fund managers and economic forecasters who are calling for the next recession and this bull run ending and while nothing goes up forever, having an arsenal that can allow you to yield profits and really grow while this market sees dips is what really empowers investors and sets us up for sustainable future. After all, it was Warren Buffett who said: “buy fear and sell greed”.