UGC Monthly Market Update | July 2023

Welcome to the UGC’s Monthly Market Update for July 2023.

Join UGC’s CEO & Chief Investment Officer, Joel Hewish, as he takes a deep dive into the latest financial market trends and conditions for the US and Australia, as well as providing an in-depth analysis of the stock markets.

Don’t miss out, CLICK HERE to get the latest video education from UGC.

KEY POINTS:

MARKET OVERVIEW – US

  • Market Strategists are split over where the U.S share market is headed.
  • Market Strategists still expect S&P 500 to have a worse H2 than H1.
  • CNN Fear & Greed Index suggests U.S investor sentiment is frothy.
  • Investor Intelligence Bull/Bear Ratio suggest U.S investor optimism.
  • S&P 500 market breadth is taking a turn.
  • Poor market breadth is not a sign of a bull market.
  • Tech stocks staying strong in 2023.
  • Inflation vs S&P 500 during the 1973-74 Recession.
  • Year-over-year percentage change in CPI.

OVERVIEW – AUSTRALIA

  • Year-over-year percentage change in CPI.

SUMMARY

  1. Investor confidence improved significantly in the past month and so has stock price action. Breakouts are holding and moving higher for the first time in 18 months. 
  2. Market breadth is improving, and the technical landscape has improved a lot over the past month, but a correction is likely just around the corner with sentiment at extremes. Indexes short term overbought and August to October seasonally weakest months. 
  3. Mega Cap technology names remained the leaders again this month, but if a correction does come, the next leg higher is where we expect to see breakouts really proliferate and for our trading activity to go to a new level. 
  4. Market Strategists are still concerned about the lagging impact of significantly higher interest rates and declining earnings in the back half of this year. 
  5. We’re optimistic that a new Bull Market has started but continue to have one foot at the exit in case the market cracks in the H2 2023 on the back of a possible recession in the U.S and Australia.

UGC General Advice Past Performance Warning

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