Market positioning

Actions speak louder than words.

It’s a common adage for a reason. Whether we are talking about romantic relationships, friendships, or indeed views on the market.

Recently, a selection of Fed Presidents in the US have announced they are selling their shareholdings, ostensibly due to a conflict of interest / ethics concerns. It’s true they could be selling individual stocks to buy index funds thus still remaining positive on the market.

https://finance.yahoo.com/news/fed-officials-sell-stocks-avoid-224555386.html

Another much watched name, Warren Buffett, appears to have been downsizing his shareholdings over Q2.

Could I be jumping at shadows? Quite possibly.

However, markets have had a massive rebound since their March 20 lows. Further, risks seem to be intensifying – particularly political risk, which could lead to havoc in financial markets. For instance, vaccines mandates could lead to resignations and significant fall in employment/spending, that will flow through to share prices. If the mental health crisis continues unabated, suicides could rise, again undermining the economy/share market. It sounds macabre to speak so clinically, but I’m simply looking at the macro (the point of this blog).

Personally, with stock prices at all-time highs and risks elevating, I’d no longer be charging into the market right now. Keeping some powder dry may prove beneficial.

Market positioning

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