And the rally is STILL going!
We cashed out our old portfolios back in May because, after 2 years, we had made TOO MUCH MONEY and we took 90% of it off the table and started a new set of Member Portfolios on June 4th. Now we're 3 months into our new set and the gains are just as silly and you have to ask yourself - where does all this money come from? Well, on Monday we discussed the massive increase in the Money Supply and $10Tn printed this year has to go somewhere - and the markets happen to be the ideal vehicle to launder the US's freshly-printed CASH!!!
Tomorrow, we'll get the Fed's plan for the next $10Tn and, if rates are going down (and they are - one way or the other) - then it's likely that money is going to find it's way into the Housing Market - so that's a sector we'll be paying more attention to into 2026. Banks are also going to start doing well and maybe there's more room in Tech before the bubble bursts - but, frankly, that's where we have our hedges.
The S&P was at 6,373 for our Aug 12th Portfolio Review and now we're at 6,615 - up 3.7% for the month and that's fine with us as we decided last month to "go with the flow" and follow the Oligarchy - betting on the rich to get richer. This month, however, we'll be looking to take a little off the table and move back towards 50% CASH!!! - because this is just getting silly(er - again!) as the markets are getting ahead of themselves and there's nothing Powell can do tomorrow to justify and 11.666% run since June.
Q2 Earnings Season has been spectacular BUT, when you look at the Heat Map, there is a HELL OF A LOT of red on the board for the past month.
