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
- 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.
- 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.
- 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.
- Market Strategists are still concerned about the lagging impact of significantly higher interest rates and declining earnings in the back half of this year.
- 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.
