Dear all S&P500 has clocked its sixth consecutive month of gains in July 2021. This is the longest stretch since 2018. Furthermore, S&P500 has touched a record high to close at 4,437 on 6 Aug 2021. In the next 3 months, are markets poised for higher highs? Or should we be prudent and take some profit off the table first? Let’s take a look. Ernest’s personal market observations

1. a) Lack of catalysts to push the market higher

Since Covid last year, markets, especially U.S. markets, have been able to push higher due partly to the combination of ultra-easy monetary policies; expansionary fiscal policies; improvement in the Covid 19 situation leading to the re-opening of economies; improving company results; low valuations (especially around Mar 2020 time) etc. However, after a blistering 102% gain from 23 Mar 2020 to 6 Aug 2021, it is likely that most of these factors may arguably...