On the day of writing, all equity markets are solidly in the green (i.e. the DOW happily over 26,000). Unlike yesterday (red) or the day before (green) and so on.
Having said that, we are starting to adjust asset allocations for clients. This is a market of uncertainty at best. In our view, there is less to be gained by risking the upside rather than preserving the downside. We know that sounds a bit dull after a 10-year bull run, but it is what it is. Let’s not give up what we’ve gained. We are recommending taking some equities off the table and heading for simpler, more predictive, albeit boring ground: fixed income, notes, cash and the like. All will look very good if and when the Dow tests 25,000 on the downside. This will be the subject of the morning coffee. There is a grand joy in saying that you “got out early”.
- This is not a time to commit overly to the equity markets (i.e. stocks).
- With those equity assets that you sell, consider moving to traditionally safer assets (i.e. fixed income).
- Know your comfort zone (risk tolerance) on land and water and respect it. That goes for all of us. Sometimes you don’t know if or when a storm is coming. Better to take early precautions.
We will be in touch shortly, or feel free to connect with us to schedule a rebalance.