Agency Of Income
  • World News
  • Stocks
  • Business
  • Politics

Agency Of Income

  • World News
  • Stocks
  • Business
  • Politics
Stocks

Is It Time to Lower Our Market Expectations?

by admin July 14, 2025
July 14, 2025
Is It Time to Lower Our Market Expectations?

I remain very bullish and U.S. stocks have run hard to the upside off the April low with growth stocks leading the way. I expect growth stocks to remain strong throughout the summer months, as they historically do, but we need to recognize that they’ve already seen tremendous upside. Could technology (XLK) names, in particular, use a period of consolidation? Well, if we look at a 5-year weekly chart, the XLK really isn’t that overbought just yet:

The weekly PPO has crossed its centerline and is gaining bullish momentum. The recent price breakout suggests to me that we likely have further to run. And if you look at the weekly RSI, you’ll note that we’ve seen the weekly RSI move well into the 70s and even close to 80 before witnessing a market top or pause. Outside a bit of profit taking, I really don’t see the likelihood of a big selloff here. Keep in mind that the XLK represents 31% of the S&P 500. If the XLK doesn’t slow down, it’s very unlikely that we’ll see any type of meaningful decline in the S&P 500 either.

Growth vs. Value

Growth stocks have historically performed well over the summer months. One way to visualize this is to compare large-cap growth (IWF) to large-cap value (IWD) using a seasonality chart. Check this out:

The average monthly outperformance since 2013 is reflected at the bottom of each month’s column. If you add those numbers for May through August, you get +5.4%. If you add those numbers for the other 8 months combined, you get +0.6%. Clearly, large-cap growth has the tendency to outperform value from May through August. We’re in the growth “sweet spot” right now.

So Should We Lower Our Market Expectations?

I say absolutely not. Yes, we’ve run substantially higher off that April low, but I see more left in the tank. Will we see profit taking from time to time and could we see a period of consolidation? Sure. But I still believe that remaining on the sidelines is a big mistake as plenty of market upside remains. In fact, I see another somewhat forgotten asset class that’s poised to scorch 50% higher or more, possibly over the next 6 months. I’m investing in this area now, as I believe it’s in the early stages of a significant rally, and believe it would be prudent for you to take a look as well. For more information, simply CLICK HERE, provide your name and email address, and I’ll send you a video that explains exactly why I’m favoring this group right now!

Happy trading!

Tom

previous post
Kash Patel torches ‘conspiracy theories’ about Bondi feud amid MAGA furor over Epstein files
next post
‘Held accountable’: Sen. Rand Paul again vows to issue a criminal referral for Fauci

Related Posts

US Strikes Iran: What Comes Next For Stocks?

June 23, 2025

Offense vs. Defense: How Geopolitical Tensions Shape Market...

June 25, 2025

Is This Rally Sustainable? You Better Bet Your...

July 1, 2025

Tariff Shock Spurs “Buy-the-Dip” Setups in Tesla and...

July 9, 2025

The Best Five Sectors, #28

July 20, 2025

The Fed Is Getting It Wrong AGAIN As...

June 19, 2025

What’s Next for Dollar Tree, CrowdStrike, and Broadcom?...

June 3, 2025

Leadership Rotation Could Confirm Corrective Phase

June 2, 2025

30 Dow Stocks in 20 Minutes: Joe Rabil’s...

July 17, 2025

Everyone Talks About Leaving a Better Planet for...

June 7, 2025

    Get free access to all of the retirement secrets and income strategies from our experts!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Supreme Court orders new arguments in pivotal elections case

    • Michelle Obama celebrates Barack as ‘coolest guy’ on his birthday after the pair joked about divorce rumors

    • Senate GOP ready to go nuclear after Schumer’s ‘political extortion’ of nominees

    • Cotton calls on IRS to pull Muslim advocacy group’s nonprofit status

    • RFK Jr cancels $500 million in mRNA research, HHS to prioritize ‘safer’ vaccine alternatives

    • All major Las Vegas Strip casinos are now unionized in historic labor victory

    Categories

    • Business (99)
    • Politics (20)
    • Stocks (112)
    • World News (313)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: AgencyOfIncome.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 agencyofincome.com | All Rights Reserved