A Comment -- General Comments From an Expert (A Commentary)

The market this week Flat is the new down. There isn't negative news, and Evergrande on Monday was merely an excuse to sell. The market won't pull back dramatically. She expects to buy stocks she missed earlier at a cheaper price soon. The market will be flat for a while. Remember that markets are up nearly 20% YTD and 30% in 2019 and 18% in 2020. All these gains are making investors a little nervous. So, they are stepping out and moving a little more money into cash, not not bonds (no income). The market is bifurcated between stocks trading around 30x and other around 13x.

Market outlook He expects another rollover coming. He's buying this week's dip, but he's cautious. Tapering will begin at some point, but he sees signs that the pandemic is ending. This means the Fed won't need to continue its pandemic supports. No, he doesn't expect the sky to fall next week or month. He holds a barbell portfolio, but favours upside short-term. Momentum is still there.

This week's market Monday's sell-off was quickly bought by investors. Investors think accomodative policy will continue though it was slightly hawkish this week. There are no real alternatives to stocks. At least short-term, stocks will trend higher. Watch for job numbers in coming weeks; he expects the Fed to start tapering in December. Earnings will also be a catalyst for stocks to rise.

This week's market The jump in interest rates from last week to now doesn't scare him, at least not yet. VolatilIty popped on Monday, a signal to him that there's blood in the streets. Evergrande wasn't a major threat, so Monday was a buying opportunity. Unless there is a bad surprise in jobs or inflation, it should be smooth sailing until the November Fed meeting. He's glad the Fed will weigh employment data before making a decision on tapering. Also, with government benefits rolling off, more jobs will arise. As the supply chain remains conStrained, inflation will remain high. Move out of tech into cyclicals? No. Evergrande, though not a new story, feed fear and uncertainty which is always there among investors.

China is cracking down on all cryptos He's a crypto bull and short-term China's move is bearish. Remember that China has been pushing back on cryptos since 2013. Nothing has created more wealth than the technologies China has been banning. China is handing the U.S. and other countries a gift; China will be left behind in cryptos. Long-term, he's bullish on cryptos. Not worried about today's plunge in crypto prices.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. If Feds start tapering, bond prices could come under pressure in the short term. The current rate environment is not normal, but it is okay considering the pandemic. Risk remains that interest rates and inflation will rise. Best to keep shorter duration bonds. Unlock Premium - Try 5i Free