In this week’s market update, we will review how the Reddit short cover panic impacted markets, how reliable our indicators were, and potential next steps for investors. We will also provide investors with an update on U.S. vaccine progress, what it means for the economic recovery, and overall portfolio positioning. Lastly, we will wrap up our review by comparing investor fund flow data to asset price performance and what the correlation, or lack thereof, between the two may mean for stock market conditions moving forward.
After a week of wild and bizarre moves within a narrow group of stocks, investors are trying to make sense of it all figure out the next steps. For those investors with a disciplined and data-driven investment process, the noise of last week was irrelevant and merely provided long term investors a great moment to buy America’s leading innovators on sale and take advantage of Wall Street stupidity, yet again.
Robert Reaburn is the Executive Vice President and Head of Wealth Management at LifePro Asset Management.