May 27, 2022
By Steve Blumenthal
I’m in Texas this week for business, golf, and due diligence. And I’m reflecting on the tragedy that happened here, and the senseless violence our country has endured recently. I’m thinking of the families that lost their children and loved ones, and thinking of you too.
Time is moving much too fast and this week it seems even faster. I do have much more to share with you from the Mauldin Economics SIC2022 (Strategic Investment Conference). But given everything happening, let’s take a pause and begin again next Friday.
Grab your coffee and find your favorite chair. We’ve got a short one today. Trade Signals follows and a few pictures from golf at Whispering Pines in Texas. Thank you for reading.
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Trade Signals: A Memorable May
May 25, 2022
Market Commentary
Notable this week:
Short-term MACD for the S&P 500 Index and Extreme Investor Pessimism support a short-term rally. No other changes in the indicators. It’s been “A Memorable May” for risk assets.
The Dashboard follows next. More red than green. Yellow arrows indicate a nearing change in signal.
Click HERE to see the Dashboard of Indicators and all the updated charts in Wednesday’s Trade Signals post.
Not a recommendation for you to buy or sell any security. For information purposes only. Please talk with your advisor about needs, goals, time horizon, and risk tolerances.
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Personal Note – Happy Memorial Day
Three years after the Civil War ended, on May 5, 1868, the head of an organization of Union veterans—the Grand Army of the Republic (GAR)—established Decoration Day as a time for the nation to decorate the graves of those who had lost their lives during the War with flowers. Major General John A. Logan chose May 30, and it’s said that he picked the date because flowers would be in bloom all over the country.
The first time it was observed, a large gathering was held at Arlington National Cemetery, across the Potomac River from Washington, D.C. People came together in front of Arlington Mansion’s veranda, and General and Mrs. Ulysses S. Grant presided over the ceremonies. After speeches, children from the Soldiers’ and Sailors’ Orphan Home and members of the GAR made their way through the cemetery, spreading flowers across both Union and Confederate graves, saying prayers, and singing hymns. Memorial Day is feeling particularly stark this year, with so many lives lost to gun violence. But I am heartened by the extra time to spend with friends and family.
Wednesday and Thursday this past week, I joined friends from E3 Wealth for golf at Whispering Pines Golf Club in Trinity, Texas. The course is about one-and-a-half hours from the Houston airport. Joe Q and his E3 have been a client for many years and the team and I have grown to be close friends. We share ideas and talk about markets, but mostly it’s about spending time with each other. If you are a golfer, put Whispering Pines on your bucket list. It is spectacular.
And make sure to hug your loved ones.
Whispering Pines – Two good friends
Whispering Pines (signature hole) – Terry, Steve, Sam, and Steve H
Mike – a new friend with mojo (greatest reading glasses of all time)
Sam, Steve, Terry, Steve, Joe, Chad, Q, Mike, Anthony, Andy
I finished this week’s letter early this morning from Dallas, Texas. I made the quick flight from Houston to Dallas for dinner last night with partners John Mauldin and David Franklin at a restaurant called Javier’s in the Highland Park section of the city. It’s a must-try if you are a foodie. We are bullish on natural gas and oil prices for the foreseeable future (not a recommendation to buy or sell), and are in town doing due diligence on an energy investment opportunity. Meetings start early today (Friday, May 27) and will run through the early afternoon. Then it’s a race to the airport for a flight home.
I’ll share more notes from the SIC2022 conference with you next week.
Wishing you time with those who matter most,
Steve
Stephen B. Blumenthal
Executive Chairman & CIO
CMG Capital Management Group, Inc.
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Forbes Book – On My Radar, Navigating Stock Market Cycles. Stephen Blumenthal gives investors a game plan and the advice they need to develop a risk-minded and opportunity-based investment approach. It is about how to grow and defend your wealth. You can learn more here.
Stephen Blumenthal founded CMG Capital Management Group in 1992 and serves today as its Executive Chairman and CIO. Steve authors a free weekly e-letter entitled, “On My Radar.” Steve shares his views on macroeconomic research, valuations, portfolio construction, asset allocation and risk management.
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