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The Breakfast Briefing: U.S. Stocks Set For Losses, With Bank Of America Earnings Ahead
It is that time of year when many investors dial down their equity allocation and raise their fixed income side of their portfolio if they play the traditional seasonal investment strategy known as "Sell in May and Go Away." Throw in the current geopolitical risk and you now have a good number of investors rebalancing towards risk off assets. Anyway, this is how I am currently viewing things.
The Sell in May strategy is linked below for those that would like to read about it.
Old_Skeets market barometer closed Easter Monday with a reading of 146 down from Thursday's reading of 150. Over the past 21 trading days the barometer's reading has averaged a reading of 143 indicating stocks on average have been overvalued by about five percent during the period. The barometer readings have ranged from a low of 139 to a recent high of 150. A higher barometer reading indicates there is more investment value in S&P 500 Index while a lower reading indicates less investment value. As recent stock market prices have been falling the barometer reading has been rising. To me, this is indicating that even with an improved earnings outlook the geopolitical risk has many investors concerned and they are moving towards risk off assets of government bonds and the defensive stock sectors.
Since, the recent March 1st stock market high I have been averaging down my allocation to stocks and increasing my fixed side comprised of bond funds, hybrid income funds and cash which includes CD's.
By calendar, its that time of year ... and, then throw in the current geoplotical risk leaves the Dog Days of Summer ahead.
Comments
The Sell in May strategy is linked below for those that would like to read about it.
http://www.investopedia.com/terms/s/sell-in-may-and-go-away.asp
Old_Skeets market barometer closed Easter Monday with a reading of 146 down from Thursday's reading of 150. Over the past 21 trading days the barometer's reading has averaged a reading of 143 indicating stocks on average have been overvalued by about five percent during the period. The barometer readings have ranged from a low of 139 to a recent high of 150. A higher barometer reading indicates there is more investment value in S&P 500 Index while a lower reading indicates less investment value. As recent stock market prices have been falling the barometer reading has been rising. To me, this is indicating that even with an improved earnings outlook the geopolitical risk has many investors concerned and they are moving towards risk off assets of government bonds and the defensive stock sectors.
Since, the recent March 1st stock market high I have been averaging down my allocation to stocks and increasing my fixed side comprised of bond funds, hybrid income funds and cash which includes CD's.
By calendar, its that time of year ... and, then throw in the current geoplotical risk leaves the Dog Days of Summer ahead.
https://en.m.wikipedia.org/wiki/Dog_days
I wish all ... "Good Investing."
Old_Skeet