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.

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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