What market meltdown?!
Yes, the global stock markets are getting crushed today – more than -2% (nearly 600 points on the Dow) as I write this note. This is based solely on the apparent breakdown of U.S.-China trade negotiations (a pivotal component of the market performance I’ve detailed over the past few months). Essentially, the expectation of a deal was factored into the stock market levels, and now that a hiccup has occurred, the market is removing that level of performance, hence, roughly 2-2.5% of the recent market gains were built on a trade deal.
BUT WE ARE NOT WORRIED! We began our 2019 strategy implementation in early March, liquidating the more risky stock positions of your portfolios, and thus, today’s decline should not cause you heartache, but rather, a sigh of relief!
I want to outline how the majority of your portfolios are doing today:
Typical weighting Position Performance
10% Global Utilities -0.27%
10% Global Consumer Staples -1.14%
10% Int’l -1.85%
5% Sm cap value -2.02%
35%
10% Preferred stocks -0.35%
5% Gold +2.40%
7% Alternative fund +0.50%
35% Bonds +0.30%
8% Cash/short-term bond +0.05%
65%
As we continue to migrate out of the remaining equity positions and the stock markets eventually see more declining days throughout the year, you can rest assured that we are positioned for a very defensive, conservative growth strategy.
