No. of Recommendations: 10
Either way - this is not the week to run for cover. Wait it out!
There are more nuanced ways to and investments to handle this situation. Depending on how much of one's portfolio is in equities, how reliant one is on income, if in retirement with a small margin of safety for the assets to survive a 20+ year retirement / time to recover.
One isn't a "lemming running for the hills" by not executing a 3 hour 3x leveraged trade at a profit. Especially in the bigger context of "identifying points of transition is critical to long term success"., balanced by "The best timing systems produce the fewest signals per year and protect your assets during a bear market." (i.e. not exiting every time there's a 5% drop).
The overlay of unpredictability in White House behavior and the inexplicable use of the tariff hammers has not been mentioned but is THE unique and critical factor driving market behavior at the moment. Will it cause a recession? There's a significant possibility that it will, and that's the current bearish overlay.
There's not just one signal shorter than the 11 month 200DMA signaling caution. The music is getting a lot louder, if not quite yet a crescendo. It may be that I'm a bit too trigger happy in deploying defense. But it saved me 10% in '22, leaving a higher base to build back from in '23.
YMWV!
FC
