Our Point
Markets are closed today for Good Friday so this will be an abbreviated note. The markets recovered a bit this week as the S&P logged a gain of over 3%. The surge on Tuesday got some follow-through on Wednesday and Thursday. The rally is beginning to repair some of the technical damage done. One of the broken support lines was recaptured and has held so far. That support now becomes important again for the bulls to hold and defend. We are not under the illusion that all is better, and we are on our way back to new highs, but we’ll take a bit of positive news. As with the tariff tantrum last year, at some point headlines become less and less important as the markets adjust to the new environment. We are beginning to see this. However, major headlines and developments in Iran will still rule the markets. Have we reached the bottom? The decline earlier this week that pierced the 6400 support may well be the bottom, but we wouldn’t be surprised if the markets test that level again before the selling is done. It really depends entirely on the Strait of Hormuz and a resolution of some kind to the conflict with Iran. On the economic front, we got good news this week with a strong retail sales report (the consumer is still spending) and the jobs report (employers are still hiring). Both point to a resilient US economy. In some respects, these reports are more important than the Middle East. While the issues with Iran will eventually be settled, the market looks through everything to see its effects on the economy. The stronger than expected economic reports are encouraging and could point to a strong recovery in the markets once the Iran war is settled. We remain wary but optimistic. Investors should remain cautious but should be compiling a list of names to put money to work as things settled down a bit. We have some cash available in our portfolios and are looking for names and areas of the market that could recover quickly. Our list is growing and opportunities come out of weakness like we have seen. Thank you for your trust in these tumultuous times. We hope you have a wonderful Easter weekend surrounded by friends and family.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Bills Asset Management (“BAM”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from BAM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. BAM is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice. A copy of BAM’s current written disclosure Brochure discussing our advisory services and fees is available upon request or at www.billsasset.com.
Please Note: If you are a BAM client, please remember to contact BAM, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. BAM shall continue to rely on the accuracy of information that you have provided.
Please Note: IF you are a BAM client, Please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
About Bo Bills
Founder and Chief Investment Officer at Bills Asset Management. With over 30 years of experience in managed risk investing, Bo has helped countless clients achieve their financial goals while preserving capital.
Stay Informed
Subscribe to our newsletter for the latest market commentary and insights.