Short Trading Week Ahead
What is it?
Leading into Labor Day weekend, the total world stock index was down slightly after a positive start to the week.* We will see if there is more of the same indecisive market action throughout this week.
Why does it matter?
Money managers may focus more time on account maintenance after the TD/Schwab merger. It will be interesting to see what institutional investors are eager to make trades on after a few days off. Whether this week is volatile or not we are confident that our processes will help us to be well positioned.
Blitz Index Update
What is it?
The Blitz Index is a tool we adopted from successful investor Martin Zweig and updated it for current conditions. Three aspects of the economy are combined with stock performance to give us a score from 0-10 from cash to fully invested.
Why does it matter?
The Blitz Index score is unchanged since our last update in August. Performance has remained elevated enough to contribute two points. Also, a measure of consumer debt has not increased too much. That aspect maintains a contribution of two points. There were no other points based on interest rates and policy decisions of the U.S. Federal Reserve. Those aspects aim to reduce inflation by contracting the cash flow in the economy. The current score of 4/10 recommends a 50% invested level, slightly below most of our tactical portfolios.
Other articles we found interesting this week:
The lasting damage ‘forever chemicals’ could do to American companies
Fed in focus as earnings, economic calendar slow
Shoppers pull back on ‘big ticket’ items
Current 401(k) portfolio
Our last 401(k) portfolio reallocation: 8/14/2023.
Want more information?
The weekly market insight provides a window into the process we use in our investment management process. At Breakaway, we believe markets are always changing and require a nimble yet data-oriented approach.
Our process attempts to identify trends and momentum in the financial markets. With that information, we align our clients’ portfolio accordingly in the hope to help our clients accomplish their life goals while attempting to lower the risk of a large drop in their portfolio.
Click here for more details about our investment management
Sources:
*TradingView. “Vanguard Total World Stock Index ETF”. TradingView. 9/5/2023. https://www.tradingview.com/chart/MeVFuzsD/?symbol=AMEX%3AVT
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