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Too Focused on Finding the Top? Still a Good Time to be Cautious …

The trend of the market has been relentlessly higher since the start of the new Bull Market way back in March 2009. The trend is your friend, and all of the forces that have created this Bull
Jordan Kimmel is a Portfolio Manager for Gitterman Wealth Management. Phone: 848-248-4290Email: [email protected] With over 30 years of experience in the financial services industry, both as a retail broker and fund / portfolio manager, Jordan is the creator of the FACTS® Stock Selection Process, which employs a unique holistic and quantitative analysis on the integrity and sustainability of over 2,000 US companies. Jordan’s FACTS® method identifies organizations with: Financial Strength Accounting Conservativeness Corporate Integrity Transparency Sustainability / ESG (Environmental, Social, and Governance) Metrics FACTS® analyzes the largest and most liquid companies, and also incorporates Jordan’s Magnet® Investment Strategy, one of the first strategies of its kind to combine the best tenets of value, growth, and momentum of company fundamentals. Magnet® has been licensed to several leading institutions around the country, and Jordan appears frequently on several major financial TV networks, including CNBC, Fox Business, Bloomberg, and ABC News, among others. He has also been quoted extensively in several publications, including Forbes, The Wall Street Journal, and U.S. News & World Report. He is the author of two books, the most recent being “The Magnet Method of Investing.” (Wiley, 2009).
Jordan Kimmel is a Portfolio Manager for Gitterman Wealth Management. Phone: 848-248-4290Email: [email protected] With over 30 years of experience in the financial services industry, both as a retail broker and fund / portfolio manager, Jordan is the creator of the FACTS® Stock Selection Process, which employs a unique holistic and quantitative analysis on the integrity and sustainability of over 2,000 US companies. Jordan’s FACTS® method identifies organizations with: Financial Strength Accounting Conservativeness Corporate Integrity Transparency Sustainability / ESG (Environmental, Social, and Governance) Metrics FACTS® analyzes the largest and most liquid companies, and also incorporates Jordan’s Magnet® Investment Strategy, one of the first strategies of its kind to combine the best tenets of value, growth, and momentum of company fundamentals. Magnet® has been licensed to several leading institutions around the country, and Jordan appears frequently on several major financial TV networks, including CNBC, Fox Business, Bloomberg, and ABC News, among others. He has also been quoted extensively in several publications, including Forbes, The Wall Street Journal, and U.S. News & World Report. He is the author of two books, the most recent being “The Magnet Method of Investing.” (Wiley, 2009).

The trend of the market has been relentlessly higher since the start of the new Bull Market way back in March 2009. The trend is your friend, and all of the forces that have created this Bull Market continue to sustain it. So why does the market “feel bad” to me right now, and why do I feel a short-term top and why even bother to try to find short term tops? 

I have recently shared my feelings that we are about to have a swift violent market correction and how to handle it. Just having a plan when sharp pullbacks come put you in the right mind fame to catch the next upturn.

The sweetest part of the four-year presidential election cycle starts in the fourth quarter of this year and has historically produced an excellent nine-month run. Expect all the economic numbers to be hitting high notes and the market to be hitting all-time highs again too. It just feels to me that the market will shake out lots of investors just prior to its next big run.

To be clear, I did not and still am not suggesting it is time to sell everything. If you follow the suggestions from last week, you would have caught this “potential last wave of this summer” even while having your eye on the exit door. I’d suggest you review those suggestions now because I really do think we are at a critical point in the short term. In my opinion, this is just not the time to be too far over-exposed. Maybe I am too focused right now on feeling a short-term top. I am looking forward to buying if (and when) fear creates a new buying opportunity by late September.

Longs- Omega Protein Corp. (OME) San Juan Basin Royalty Trust (SJT)

Shorts- NetSuite Inc. (N), Teck Resources Limited (TCK) Sarepta Therapeutics, Inc. (SRPT)

By Jordan Kimmel, Chief Investment Officer at Investview, Inc. (INVU).

 

 
The saying that there is no such thing as a free lunch is very much true for Robinhood.