Photo by Katee Lue on Unsplash
Off to the Adirondacks
By the time you read this I will be in, or on my way to our house in Bolton Landing, NY overlooking Lake George with our friends, the Rosens. On Tuesday, we will be on our boat with our friends on Lake George, newly outfitted with a new Mercury engine. Wednesday we will all be at the historic racetrack in Saratoga Springs, NY. Mr. Rosen is an expert handicapper, and I use my mathematical skills to make the wagers. Just to make it clear, this is just friendly entertainment for us.
In other words, I am taking the week off. It is a long time coming. You will be in the capable hands of Carly while I take my annual vacation in the Adirondacks. Though, she can reach me in an emergency, but please not during a race.
Markets Have a Busy Week Ahead
The market is beginning the week with the announcement on Sunday that the EU has come to an agreement with the US on a trade framework. That might give us a little bump higher on Monday but there is a long week ahead.
There are a multitude of economic releases this week including the Federal Reserve Open Market Committee’s decision on interest rates. Expect Chairman Powell to give the American people another big middle finger and keep interest rates unchanged. On Friday the July Labor report will be issued by the BLS (Bureau of Labor Statistics). In my opinion, it can go either way.
Historically We Are Entering a Weak Week
Typically, this first week of August has a negative bias to it. It usually seems that the markets get disappointed by the July Labor Report or something else for no real reason at all. Then we get a bad day or two. Who knows why. Maybe expectations are too high or perhaps the data aggregation is a bit sloppy for the summer. Most likely, by the time the calendar turns to August, we are ready for a seasonal pullback.
Regardless, in August, the A-Teams normally running the trading desks are off at the Hamptons, on the golf course, at Saratoga Springs or on a beach somewhere. That leaves the B-Teams in charge. The B-Teams are usually allowed to only sell stocks and not buy stocks (add to existing positions or buy new ones).
Time to Hold Cash
I have instructions in to raise cash on Monday. We are beginning by selling all of our positions in International Business Machines (IBM). Yes, the stock is in the green this year but has traded poorly of late. Thus, we felt it was a good source of cash.
We had a flood of new accounts and cash flow into LakeView Asset Management last week. Given that the markets have a tendency to be weak this week, we are likely, but not certain to wait to put that cash to work. We are also looking for new stocks to add to our portfolios for the next leg up in the markets. Finally, once I get back to my trading desk, on August 4, Palantir (PLTR), one of our largest holdings will report results and we want to be strapped down in our chairs for that event.
A Quick Note for Clients: If you receive a text message of any sorts from Schwab with a link. Do not click it. This is a phising (spam) attempt. Charles Schwab will never text you. If you receive one of these text messages for any reason, please report it as junk and delete it from your phone. Before doing so, feel free to send me an email or text to our text message line a copy of it for your reference. Thank you.
______________________________________________________________________________
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView Asset Management, LLC, owned PLTR, although positions can change at any time. The mention of stocks are not recommendations and may not be suitable investments for your individual situation.
Scott Rothbort is the President & Founder of LakeView Asset Management, LLC, (LVAM) an investment advisor representative, specializing in high-net-worth private wealth management. LVAM is a separate entity of Osaic Advisory Services, LLC, a registered investment advisor.
For more information on investing with LakeView Asset Management, LLC call us at 702-749-9343 or request more information by clicking on the contact button on the top right-hand corner of the website or by emailing Scott at scott@lakeviewasset.com or Carly at carly@lakeviewasset.com. LakeView Management, LLC is a Nevada LLC, with its principal office located in Henderson, NV and branch office located in Millburn, NJ
© 2025 LakeView Asset Management, LLC. All rights reserved.