These shifts should lead to a continuation of their business cycles, increased corporate earnings growth and jobs creation, and higher stock prices. However, as markets have recovered from their December crash extremes, risks are pervasive, and we think investors should approach the markets with risk in mind.
The Cash Indicator
The Cash Indicator (CI) has declined to a level more consistent with historical norms. This points to a properly functioning market and lower risks. In December, the CI once again reflected higher market risks, but not to a level suggesting a significant reduction in market exposure. We think that the movement in the CI through December’s selloff and January’s rally is consistent with how the CI was designed to work.
Disclosures
Any forecasts, figures, opinions or investment techniques and strategies explained are Stringer Asset Management, LLC’s as of the date of publication. They are considered to be accurate at the time of writing, but no warranty of accuracy is given and no liability in respect to error or omission is accepted. They are subject to change without reference or notification. The views contained herein are not be taken as an advice or a recommendation to buy or sell any investment and the material should not be relied upon as containing sufficient information to support an investment decision. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested.
Past performance and yield may not be a reliable guide to future performance. Current performance may be higher or lower than the performance quoted.
The securities identified and described may not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in the securities identified was or will be profitable.
Data is provided by various sources and prepared by Stringer Asset Management, LLC and has not been verified or audited by an independent accountant.
Index Definitions:
S&P 500 Index – This Index is a capitalization-weighted index of 500 stocks. The Index is designed to measure performance of a broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.