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Market Indicators

5/10/2018
Sunday morning is one my favorite times at our home. As my family is sleeping in, I cherish my uninterrupted early meditation without disruptions, yet am aware of loved ones’ presence. My “to-do list” is limited to laundry.

The decision, this a.m., to move to the living room proved fruitful. I found myself watching a robin build a nest in one of the smaller trees in our yard. It was amazing to see it gathering twigs for the nest. How did it intrinsically “know” which twigs to use? Where did it learn what dead grass to use, what items to select and how to make the nest solid and comfortable?

My next thought, I don’t want a nest in my tree! Wait! I paused for a moment to reflect. Seemingly, I found myself presented with several lessons from my observations. The nest was causing no harm and it is still under construction.

So, what does this nest building have to do with investments the reader asks?

There are so many conflicting indicators for the market at any given time. We, at Vista, prefer to use indicators that have stood the test of time. Simpler is better. How do we know which investment signals are most meaningful? Experience; decades of it. There is almost an internal compass.

This week, we were given a “twig”, that has been missing since the January peak. The market closed the week strong. That “twig” has been missing for some time. That, along with the out-performance of the small cap, and mid cap indexes, make our case for higher prices look correct. We shall soon see…

Enjoy the day…r2