Two weeks ago, I started off this missive stating:
“Well…after months and months of indigestion, the markets MAY, and I repeat MAY, have finally come to a decision to end the current bull market run.
The chart below is updated through LAST Thursday’s close. (click for larger version)
The reason I say MAY, and not definitely, is that we have seen initial breaks of trends previously (red circles in the chart below) that were quickly resolved by rapid Federal Reserve interventions.”
As I stated last week:
“In years past, when you had this kind of technical deterioration, a move to substantially all cash within portfolios would have been both a wise and timely move. However, the problem currently is that the ongoing interventions of Central Banks globally are keeping asset prices inflated which increases the risk of being “wrong” with respect to the timing of a ‘risk reduction’ strategy.”
The time has now come to start moving more heavily to cash. As I will discuss throughout this weekend’s missive, including the 401k-Plan Manager, it is now time to “OPPORTUNISTICALLY” REDUCE PORTFOLIO ALLOCATIONS.
