Market Analysis

The markets are continuing a correction of the rally from the early April 2025 low as we accelerate to what will probably be a climactic low around 45,000-46,000 on the Dow Jones Industrial Average.  As we have mentioned before, the Industrials and Transportation indexes signaled a long-term buy earlier this year by both making all-time highs concurrently.  Frequently this type of action brings with it a correction to temper investor enthusiasm and create fear to swing the pendulum from optimism to pessimism to set up a new leg of the long-term bull market.  At this point there is no evidence of any long-term implications for the decline in prices that we are currently experiencing and we are still firmly in the bullish camp.

These corrections serve as an opportunity to assess our current holdings and adjust for stocks that have fallen out of their uptrends and seem to be headed for consolidations or declines.  As part of our “Cycle Investing” philosophy we follow the earnings flow for companies who are best suited for the current phase the economy may be in and emerge as leaders for the next move up in the averages.  We may be making some changes to some of our holdings to keep money in these new leaders.  As always, if you have any questions or concerns do not hesitate to contact us.

Gary and Dianne

This report is provided as a general market overview and should not be considered investment or tax advice or predictive of any future market performance.

Any security mentioned in this report may not be suitable for all investors. No investment mentioned in this newsletter constitutes a recommendation to buy, sell or hold a particular investment. Such recommendations can only be made on an individual basis after an assessment of an individual investor’s risk tolerance and personal circumstances. Past performance of any investment mentioned is not a guarantee of future performance. Statements regarding the investment concerns and merits of any company and fair market value computations are strictly the opinion of Marin Group. Employees of Marin Group and Marin Group clients may have positions and effect transactions in the securities of the issuers mentioned herein.