Loading ...Investors should be very aware about the deviation in performances across asset markets. Historically, this is more of a sign of a late-stage market topping process rather than a “pause that refreshes the bull run.”
This is particularly the case when this crowding of investments is occurring simultaneously with an inverted yield curve.
On a purely technical basis, when looking at combined monthly signals, we see a picture of a market in what has previously been more important turning points for investors.
Sure, this time could turn out to be different.
Since I manage portfolios for individuals who are either close to, or in retirement, the risk of betting on “possibilities,” versus “probabilities,” is a risk neither of us are willing to take.
Let me restate from last week:
“Given that markets still hovering within striking distance of all-time highs, there is no need to immediately take action. However, the continuing erosion of underlying fundamental and technical strength keeps the risk/reward ratio out of favor. As such, we suggest continuing to take actions to rebalance risk.
Remember, it is always far easier to regain a lost opportunity. It is a much more difficult prospect to regain lost capital.