Waiting Room

Hello Boodle members and everyone interested in learning about investing in the markets. We appreciate you checking out our blogs and learning about investing on our Boodle.com site. We have a lot to cover, so let’s get to it!
The Federal Reserve raised interest rates 0.75% at its July meeting, and interestingly enough, the market rose, signaling to investors that the rate hike was acceptable over the 1.00% full point rate hike that had been forecast.
With the Bears in control on Wall Street, July provided some relief for Bulls who have been licking their wounds for all of 2022. For the month, the DOW rose by 6.7% and the S&P 500 gained 9.1%. The big Index winner was the NASDAQ which advanced by 12.4%.
The gains were the best that the market has produced since 2020. We welcome some relief for investors, but our best research continues to make the case that we are still in a Bear Market and thus, our view has not changed when it comes to expecting an end to this Market downturn that started in January of this year. We believe this because inflation continues to remain stubbornly high. Food prices and energy cost are wreaking havoc on the households of most Americans, and the computer chip shortage has not been resolved as we go to press.
Also connected to the high inflation being felt by consumers, supply chains continue to have a tough time getting their goods to consumers. We believe relief should come sometime this fall, and this is a good opportunity to segue to what we think may a potential buying opportunity in the coming months.
This year, 2022 is an election year and many voters and citizens, according to polls are very unhappy with the economy and other issues like crime, under-performing schools, and war. In the past, whichever political party held control of Congress and the White House, that party often lost control of Congress, and so far, we believe history will repeat itself and that the Republicans will make some significant gains. Our research is indicating that the House of Representatives will change over into Republican hands – we place a 90% possibility on this happening. The Senate is more difficult to forecast, so we will call that branch of government, a toss-up.
If what we are forecasting happens, this will set the stage for a potential buying opportunity, and at that time, Boodle will recommend that your cash holdings go into the stock market, based on your allocations and your tolerance for risk. Although these events are tough to forecast, we believe the opportune time for a buying opportunity will likely occur between August 2022 through October 2022. All you need do is follow Boodle, and we will do our absolute best to identify this opportunity, and alert you on how to take advantage. Until that moment, we maintain our opinion of dollar cost averaging into your portfolio and place your money into your chosen money market fund. We are waiting for the proper conditions to form and when it does, Boodle will alert you! We will see you here in September, and until then, enjoy your summer. Thank you for choosing Boodle.