2024-07-01 08:42:39 ET
Summary
- I'm short-term bullish on the markets, but recognize that there are significant long-term concentration and valuation risks.
- Therefore I like to allocate a significant part of my portfolio to defensive stocks.
- Proctor & Gamble is a great business, but is currently trading on the expensive side to justify a BUY rating.
Dear readers,
I recently shared my latest market outlook in an article on the S&P 500 ( SPX ) and explained why I continue to be bullish in the short term . In short, it's due to a combination of (1) inflation which is very likely to decline in the second half of the year as we work through the lag in shelter and auto insurance CPI, (2) consequently larger than expected Fed rate cuts, and (3) a likely liquidity boost around the election which, among other things, should come from (forced) lower QT by the Fed the draining of Janet Yellen's the treasury account....
Read the full article on Seeking Alpha
For further details see:
Procter & Gamble: Stable And Growing Business, Slightly Overvalued