Market Commentary for February 2020

"Off to the races..."

By Alan Hull

This commentary is in part or entirely created using extracts and comments from my weekly Blue Chip Report. For more information about the Blue Chip Report, including subscription details and a recent sample report, go to Blue Chip Report

2020 is well & truly underway and we are off to the races. This is a highly predictable period in the market cycle as we are now in the lead-up to the U.S. Presidential election in November, where the incumbent is sitting for re-election. And Trump is going to do his level best to ensure that nothing is going to spoil his chances...just like all the other incumbent Presidents have over the past 60 years.

But unlike past Presidents, Trump uses Stockmarket performance as an economic benchmark. Furthermore, few past Presidents have wielded the sort of influence that Trump does over global financial markets and trade. So strap yourself in for a bull run for at least the next 6 to 8 months, with Trump in the drivers seat. This is a rare opportunity for investors and a time when looking at the charts is only to provide ongoing confirmation....

After all the turmoil of 2018/19, the SP-500 index is showing a really obvious upside continuation pattern where I have little doubt that it will continue for some time. So we want to be in this market and making hay while the sun is shining. What happens on the other side is another story and I will be covering all the strategies that investors need to have at the ready in this year's course. There are still a few seats left in both Melbourne and Brisbane and you can find full details about the course here