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US stocks rallied late on Wednesday after trading choppily throughout the day. At the Federal Reserve's press conference in the afternoon, Chair Jay Powell indicated that the risks of higher unemployment and higher inflation have increased. One new domestic fund buy is the Value Line Larger Companies Focused Fund (VALLX), notes Brian Kelly, editor of MoneyLetter.

The Federal Open Market Committee held interest rates steady after its meeting. The accompanying statement warned that the tariffs announced by the president have increased uncertainty. This uncertainty will result in the central bank taking a cautious approach to its somewhat restrictive monetary policy. A rate cut by the Fed in June is very much in question.

That said, our global stock markets were all higher over the reporting period. For May 1 through May 7, the S&P 500 gained 1.1%; the Euro Stoxx 50 advanced 1.4%; the Nikkei 225 rallied 2.0%; the Shanghai Composite advanced 1.9%. 

Value Line Larger Companies Focused Fund (VALLX) Chart

Data by YCharts

While US stock markets have posted significant gains since April 8, we are not out of the woods as far as market volatility is concerned. Our best advice is to stay diversified, maintain your long-term vision, and maintain your asset allocations.

As for VALLX, the fund seeks long-term growth of capital. Under normal circumstances, the fund's portfolio will generally consist of positions in 25 to 50 companies.

During the investment selection process, the fund performs fundamental and quantitative analysis on each company and utilizes the rankings of companies by the Value Line Timeliness™ Ranking System to assist in selecting securities for purchase.

My recommended action would be to consider purchasing the Value Line Larger Companies Focused Fund.

About the Author

Brian Kelly has enjoyed a long career in newsletter publishing and has maintained involvement with MoneyLetter continuously since 1984. He has been a member of the MoneyLetter Investment Committee for over 30 years.

As vice president and product manager for IBC/Donoghue Inc., and IBC USA (Publications) Inc., Mr. Kelly was responsible for all aspects of the MoneyLetter group of products including planning, marketing, fulfillment, customer service, and public relations.

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