(8/1/23) Summer is in full-swing, and markets are matching the heat with extreme bullish sentiment. What is the cost of hedging your portfolio over time? No one believes a correction is coming (so it probably will). Companies are receiving no reward for beating (lowered) estimates; the number of companies achieving beats is declining. 3% - 5% correction in August should come as no surprise. Bullishness in S&P 500: Everyone can't wait to get in; wait for most-favorable risk/reward dynamic when market corrects. How to increase economic prosperity? Growing the economy, reducing debt. The current US Debt to GDP ratio is 180%! There is no easy fix for our debt problem. Pre-market commentary: Employment numbers and the 2023 Jackson Hole Central Bankers' confab is coming; why wouldn't the Fed hold firm at 5% rates when markets/economy seem to be doing fine? Pricing-in any rate cut could be premature. The dynamics of inflation, year-over-year measurement, and dis-inflation. Monetary normalization is far from complete: The risk still exists that the Fed will not pivot anytime soon.
SEG-1: Markets Match Summer Heat
SEG-2: No Reward for Earnings Estimates
SEG-3: How to Increase Economic Prosperity
SEG-4: Why Pricing-in a Rate Drop May Be Premature
Hosted by RIA Advisors Chief Investment Strategist Lance Roberts, CIO
Produced by Brent Clanton, Executive Producer
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Watch today's show, on our YouTube channel:
https://www.youtube.com/watch?v=t00ufC9aedY&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=4s
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The latest installment of our new feature, Before the Bell, "Correction in August?" is here:
https://www.youtube.com/watch?v=BoYkSwT_5OM&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1
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Our previous show is here: "Is the Bull Market Unstoppable?"
https://www.youtube.com/watch?v=G3s_0JPku5c&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=2100s
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Articles mentioned in this report:
"Bullish Measures Are Getting Really Bullish"
https://realinvestmentadvice.com/bullish-measures-are-getting-really-bullish
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https://realinvestmentadvice.com/newsletter/
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Contact Us: 1-855-RIA-PLAN
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