Wealth Watch: Rates on the Rise and the HCM Cash Buildup Continues

Wealth Watch: Rates on the Rise and the HCM Cash Buildup Continues

June 16, 2022

From the desk of Vance Howard:


The Federal Reserve did raise interest rates by .75 percent this afternoon, and this is a welcome event. This is the first time there has been any real meaningful move to slow the rise in inflation. This market is looking for leadership from the White House, the Fed and the Treasury department and this is the only real meaningful event we have received from any office in the federal government.

The markets have sold off fast and deep after Friday’s inflation number jumped even higher. Optimism was starting to tick up as the market closed one day above the HCM-BuyLine® indicator on June 6th, indicating the potential start of a new trend. Remember, the market must close above the HCM-BuyLine® for 5 days for a confirmed signal to re-enter the market, which it did not do. The markets immediately sold off a sharp 9%+ in 4 trading days after the inflation number was released. One thing you most likely can expect is extreme volatility over the next few weeks, if not a few months.
I’m sure many of you have seen and read about Ray Dalio, who manages one of the world’s largest hedge funds. He is a big practitioner of transcendental meditation (TM). Transcendental meditation is usually practiced twice a day for 20 minutes where you sit in a quite space, close your eyes and try to empty your mind of stress and negative thoughts. Ray Dalio is a very big believer in TM and speaks about its benefits on a regular basis. So why do you think Ray is such a big advocate of TM? Answer: because of markets like this! Everyone, and I mean everyone, is getting thrown around the room in markets like this. Even Ray Dalio.
Stay optimistic. I have never met a rich pessimist!

Vance Howard

This communication is issued by Howard Capital Management, Inc. It is for informational purposes and is not an official confirmation of terms. It is not guaranteed as to accuracy, nor is it a complete statement of the financial products or markets referred to. Opinions expressed are subject to change without notice. Howard Capital Management, Inc. may maintain long or short positions in the financial instruments referred to and may transact in them as principal or agent. Unless stated specifically otherwise, this is not a recommendation, offer or solicitation to buy or sell and any prices or quotations contained herein are indicative only. To the extent permitted by law, Howard Capital Management, Inc. does not accept any liability arising from the use of this communication. Howard Capital Management is an SEC-registered investment advisor which only does business where it is properly registered or is otherwise exempt from registration. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability. Past performance is no guarantee of future results.HCM-011222.01

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