The stock market’s rise since its bottom in June has been surprisingly strong and widespread. However, a number of technical indicators recently were beginning to indicate that stocks, especially the Nasdaq, were close to “overbought” and ripe for a correction.
Nevertheless, there is enough uncertainty in both markets and the economy at this time to warrant a conservative investment posture, which to us means focusing on high quality defensive equities and maintaining a sizeable emphasis on cash equivalents such as treasury bills in our balanced accounts.
Our August, 2022 Market Commentary provided by Derwood S. Chase, Jr., Founder & Chairman Emeritus, Chase Investment Counsel.