For the week, the Nasdaq shed around 1.4%. My allocation is now so bearish, I’ve moved out of the house to seek shelter inside of a nuclear fallout bunker. All of my positions are chosen using quantitative methods using the Exodus platform, so I have no artistic license when it comes to my investments anymore. Bear in mind, the program and the rules were developed by me, so in a direct way, my philosophical theories on markets, backed by big data, is the true captain of my pirate vessel.
For the week, I performed in line with the SPY — but my GLD and TLT positions trounced the indices. As a result, my allocation to both of them was increased to a record 15% a piece. In order to get to 15%, these risk off assets had to beat the SPY for 3 consecutive weeks. With 20% of my assets in cash, I am now half out of equities, with the rest of my money strewn out amongst large cap stocks — all new picks chosen today.
What does this mean?
As of right now, it means the market has been sucking giant moose nuts for at least 3 weeks. Don’t get it twisted, we’re undergoing some serious distribution. You’d be wise to protect your portfolios and prepare for the very worst.
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The only thing that matters is what the FED does. Print or not print? That’s the question. Are CBs balance sheets expanding? Frontrun the CBs and buy what the CBs are buying, i.e. SNB, with their ex nihilo confetti.
Fed is going to sell its holdings.
Long term the unemployment rate matters above all.
You meant to say the FED will attempt to sell its worthless holdings. You did not say who will buy it though. Nobody is the answer. The FED will dump it’s junk into 401K’s and rob the savers, again, because that’s what the (((FED))) does best and is the bestest at. Just watch…
You’re both wrong. The Fed isn’t going to sell any of its assets; it will just let the securities mature and not make purchases to replace the matured assets.
By allowing their assets to mature without replacement, they shrink the balance sheet. This has been the plan for several years and the Fed has stated such multiple times. There won’t be any selling of assets in the open market.
The Fed shrinking its balance sheet won’t matter much; the demand for govt paper is still very strong. Sarcrilege, you need to see the world as it is, not the one you want it to be.
Yeah, sure we’re wrong (sheesh) cuz no .gov ever stole citizens’ savings and .gov would do all this prep work just for fun:
https://tinyurl.com/qj8n5ks