For a variety of different factors, we’ve wanted to tactically be selling stocks all week and buying bonds instead, particularly US Treasury and Municipal Bonds. The weight of the evidence has been pointing to a more defensive rotation and out of risk assets. We listen to the market and act accordingly. Anything else would be irresponsible.
To be clear, longer-term uptrends in stocks and indexes globally are still intact, so far. Our goals, however, are to make money this quarter. We’ll worry about next year, next year. We’ll worry about the 3rd and 4th quarters when we get there this summer. For now, as we finished up January we’re now entering what is historically the worst of the “Best 6 Months of the year”, which go from November through April. So stocks going down in February would be perfectly in line with seasonal trends.
With that said, the biggest and most important index, arguably, in the United States, and maybe even the world, just achieved its upside objective. Keep in mind that Technology also represents about a quarter of the entire S&P500 Index: [Read more…]