Saturday , 4 February 2023

A DEEP Correction Is Due – Here’s Why & What To Do About It

…Now that stimulus is poised to start being reduced we can…expect a choppy stock market to emerge imminently, if it hasn’t already…

Here’s about where we stand now.

S&P 500 Geometric Standard Deviation Average

Clearly, valuations are partying like 1999…The questions are how long the party can last…? Below is a chart of the S&P 500.

S&P 500 Technical View

…A correction is inevitable. You are playing with fire if you are chasing here…

Investment Actions Now

  • …If you are retired and conservative by nature, raising cash to 50% by trimming your weakest positions most is a great idea.
  • If you’re more aggressive, then ramping up to a war chest of 20% cash makes a lot of sense by trimming your least attractive long-term holdings and weakest performers the past year…
  • In short, tighten up your asset allocation. Risk management first.
Editor’s Note:  The above version of the original article by Kirk Spano, has been edited ([ ]) and abridged (…) for the sake of clarity and brevity to ensure a fast and easy read.  The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.  Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

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