Weekly Wrap Up 8-9-19
With the markets getting choppier, we want to make sure that we are informing our clients and followers as best we can. We have signals on Monday, Tuesday Top Charts and now, Weekly Wrap Up!
To say that this has been a choppy week would an understatement, for the markets and volatility. Although China has gotten a lot of press on this, the picture turned again to earnings, which have not been good. Quarter over Quarter we have gone from, 24%, 12.2% and now 2.35%. Look at Materials and Tech, the trend is not their friend.
The other big story of the week were Bonds crashing around the world, with the 10 year going under 1.6% for a bit. We have been long on Bonds and Bond Proxies (utilities, Staples, Gold, etc). since November and they have helped us in what has been a bumpy ride. But at 1.6%, we felt we have gone a bit too far and trimmed our positions and raised an additional 3% cash. This is not to say we will not add at at a later date, they've just gotten a little long in the teeth. Also, I will say that the Bond has been telling a completely different story then the Stock Market and I for one have been listening....Reduce Risk!
Lastly, we follow a lot of data as part of our investing process; price, volatility, volume and institutional behavior, to name a few. Below is chart of Institutional managers and their level of investment. They took a huge amount off the table this week, reducing exposure to 56% in equities.
We don't only talk about being outside-the-box thinkers, we live it. For reasons above, and many others from our most recent videos, we have reduced risk. Currently holding over 10% in cash and staying nimble until we get a better direction either up or down.