You’ve heard the phrase ‘the market climbs a wall of worry’ which means that historically, even though there are things to worry about, the market most often continues chugging along to the upside. So, this is a rather un-worried time.  The major US indexes* are extending their breakouts (bullish) as the S&P 500 (Large caps) MDY (Mid-Caps) and even IWM (Small caps) are looking pretty darned healthy. I don’t think there is any continuing debate as to whether the trend is up.

Add to that the headlines that appear to tout news (vs. rumor) that Brexit will most likely happen (given the impressive win yesterday by the Conservatives in the UK), and that China and the US appear to have finally agreed on a weak first step to the trade negotiations. This covers two of the three worries that have plagued the markets during 2019. These would appear to have lifted the cloud of uncertainty that have clouded the markets this year.

That still leaves the trade deal with Mexico and Canada – the USMCA.  In spite of the glaring headlines that this is a finished deal, it seems that it isn’t done until the Senate ratifies the deal. And that may not actually happen – a trade deal that so heavily favors the power of the unions may not fly in today’s heavy politically-charged Congress. But of course, we’ll see.

On the technical side Europe is showing strength, and emerging markets have (finally!) achieved what looks like quite the breakout – prompting my earlier comments that the big market wins over the upcoming twelve months may be non-US markets (an observation, not a recommendation).  I do not mean to downplay the US markets where we are (also finally) seeing a loss of strength in the conservative plays and a significant gain in the momentum of the aggressive sectors (finance, industrials, and technology).

So, are we in the clear?  Is it all clear sailing from here?  Not quite, and investors waiting for an ‘all-clear’ signal from Ms. Market will likely have a long wait.  And of course, you’ve heard me state a number of times that when you see all headlines proclaiming ‘Everything is Good’ it’s probably time to run for the hills.

Nevertheless, with fundamentals and technical lining up to present a continuing bullish case for markets, I continue to believe that Santa is delivering the goody-filled stockings for the close of this year, and my best guess is that the long equity rally will continue into the new year.

Ron’s Market Minute

Well, I can breathe a sigh of relief right now as Marketwatch.com sports these headlines today ‘Brace yourself for mediocre stock market returns’ followed by ‘It’s time to back up the truck and buy, buy, buy because there is no risk’. I’m glad to see there is certainly not a consensus that all things are in the clear. That will help me sleep better tonight. 

Have a good weekend. 

Ronald P. Denk, CFP®
Investment Advisor
Denk Strategic Wealth Partners
10000 N. 31st Avenue, Suite C-262
Phoenix, AZ 85051
Phone (602) 252-8700
Fax (602) 252-8701
Toll-Free (877) The-Denk
www.denkinvest.com

This weekly article reflects news, commentary, opinions, viewpoints, analyses and other information developed by Denk Strategic Wealth Partners and/or select but unaffiliated third parties. DSWP provides Market Information for illustrative and informational purposes only. If you wish to receive this weekly commentary by email please contact us at 602-252-8700 or by e-mail at
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Ronald Denk is an Advisory Representative offering services through Denk Strategic Wealth Partners, A Registered Investment Advisor. He is also a Registered Representative, offering investments through Lincoln Financial Securities Corporation, Member FINRA/SIPC.

Denk Strategic Wealth Partners is not affiliated with Lincoln Financial Securities Corporation. Information in this commentary is the sole opinion of Denk Strategic Wealth Partners. Past performance is no guarantee of future returns. All market related investments involve various types of risk, which include but are not restricted to, credit risk, interest rate risk, volatility, going concern risk, and market risk.

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*The indices are representative of domestic markets and include the average performance of groups of widely held common stocks. Individuals cannot invest directly in any index and unlike investments, indices do not incur management fees, charges, or expenses, therefore specific index returns will be higher. Past performance is not indicative of future results.

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