Week of July 24, 2023
The Standard & Poor’s 500 stock index peaked at roughly $4,779 in October of 2021. This past week it closed at $4,536, about 5% off of its prior high and roughly 25% above the lows reached in the summer of 2022. As mentioned in recent Sigma Signals, the failure of Russia, in concert with the unfolding and obvious positive impact of artificial intelligence, has had a bullish effect on investor sentiment. As long as some level of fear over a stock market retrenchment persists (Will the Stock Market Crash in 2023? 7 Risk Factors; U.S. News & World Report, June 29, 2023), a significant near-term setback seems unlikely. Similarly, our Signals remain unchanged.
Bob Bilkie, CFA.