MAY 29 2023 UPDATE

The market is telling. And 1 new stock I am buying.

Important: this is not investment advice. Consult a licensed financial advisor before making any investment decision.

-

Quick update for the week.

On Monday the US market was closed because of Memorial Day.

My current thinking in a nutshell:

• The market is strong in one sector only which is technology, fueled last week because of the surprising positive results from Nvidia, confirming the strong demand behind the scenes for Artificial Intelligence infrastructure;

• Only the Nasdaq looks fully healthy

• The rest of the market is lagging

• Defensives like Staples and Energy are out of favor right now which speaks to a low level of concerns regarding an imminent recession

• The agreement on raising the debt ceiling is now done, taking away the biggest threat on the markets in the very short term

• We may have a market that goes up selectively as it happened in 2022 with the energy sector… it may happen the same in 2023 for the Technology sector

• Monetary policy is restrictive (M2 keeps contracting) which is no…