This is all new.\u00a0 None of it planned.\u00a0 No White Papers. Just tweets. Hence disturbing. Unpredictable. Turbulent. Volatile.<\/p>\n
This week’s NASDAQ. Not a pretty picture. But probably what we face in coming months:<\/p>\n
Respected BCA Research put out “Special Report” called Three Policy Puts Go Kaput; Downgrade Global Equtiies to Neutral:<\/em><\/p>\n Three macro “policy puts” are in jeopardy of disappearing or, at the very least, being repriced:<\/p>\n + Fed Put: Rising inflation has made the Fed more reluctant to back off from rate hikes at the first hint of slower growth or falling asset prices.<\/p>\n + China Put: Worries about high debt levels, overcapacity, and pollution all mean that the bar for fresh Chinese stimulus is higher than in the past.<\/p>\n + Draghi Put: Bailing out Italy was a no-brainer in 2012 when the country was the victim of contagion from the Greek crisis. But now that Italy is the source of the disease, the rationale for intervention has weakened.<\/p>\n These factors, along with additional risks such as mounting protectionism, warrant a more cautious 12-month stance towards global equities and other risk assets. The fact that valuations are stretched across most asset classes only adds to our concern.<\/p>\n A neutral stance does not imply that we expect markets to move sideways. On the contrary, volatility is likely to increase over the balance of the year, with the next big move for global equities probably being to the downside.<\/p>\n You can read the full report here: Click\u00a0BCA Research<\/a>\u00a0<\/strong><\/p>\n The New York Times<\/em> ran a big piece A Recession Signal Is Flashing Yellow. <\/em>It all has to do with the yield curve:<\/p>\n There’s evidence a flattening yield curve can predict the next recession.<\/p>\n I’m not getting crazy and suggesting you dump all your shares. Here are some sensible strategies for this weekend:<\/p>\n + Read the Times’ full narrowing yield curve article Click here.<\/strong><\/a><\/p>\n + Look carefully at what you own. Are there some stocks that should be trimmed because you’re unsure of their prospects (e.g. Boeing and Raytheon). And stocks with heavy exposure to Europe and China.<\/p>\n + Do you have a 15% cash cushion? That seems reasonable in uncertain times.<\/p>\n + Do you have buy orders in on your favorite stocks at ridiculous prices — say 20% below?<\/p>\n + Are you keeping an eye on your stop loss orders? 15% is a good number.<\/p>\n + Don’t watch the market. It’s going to get even crazier.<\/p>\n + Don’t let all this nuttiness hurt your weekend.<\/p>\n + If you have the stomach, invest a little crazy money in some gambles, e.g. IQ, SHAK, SHOP, NOW, DOCU and INTU.<\/p>\n If Amazon had not bought PillPack, I would have.\u00a0<\/strong><\/span><\/p>\n They put your day’s pills in one packet. Watch the video. It’s brilliant. Click here.<\/a>\u00a0<\/strong><\/p>\n Your children should all own a little stock.<\/strong><\/span><\/p>\n Good to own are companies whose products they use. All kids have Nike shoes. Look what the stock has done this year.<\/p>\n![\"Nasdaqthisweek\"](\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2018\/06\/Nasdaqthisweek.jpg\")
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