A shift to safety trades could burn investors
"A shift to safety trades could burn investors"
in the newsA shift to safety trades could burn investors? What this all about..... See below.
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Sentiment Trader saw PNC Financial's Jeffrey Mills has a message for investors: Resist the urge to play it safe.
The firm's top investment strategist is concerned jitters are driving investors into less profitable or worse — losing — areas of the market.
Right now the market is not looking the best, and its not only that, you can see the lower highs being put in, is really a troubling sign here, and its not the little guys on the backfoot, it has some bigger FUNDS shaking in their boots, look at the dow JONES charts, its defiantly skating on thin ice here.
Folks may have an inclination to do drastic things in portfolios to insulate themselves from higher volatility when in fact we think the backdrop would actually portend the exact opposite.
"It's key to understand that the call for higher volatility doesn't have to be a call for poor market performance,"
His hunch appeared to be timely. According to the Investment Company Institute, investors yanked the most money out of U.S. stocks in February since the 2008 financial crisis. The data suggest market participants are getting increasingly nervous amid whipsaw action in stocks.
"Investors, and really humans in general, have this inclination to try to make themselves feel safer," think about folks who are afraid to fly. They actually choose to drive even though driving is exponentially more dangerous."
The Dow Jones Industrial Average and S&P 500 Index are now are essentially flat for the year. Meanwhile, the Nasdaq is up 3 percent year-to-date.
Economic fundamentals and solid earnings will push stocks higher this year even though valuations remain elevated — adding it's the wrong time to get majorly defensive. The Dow may not soar 25 percent like in 2017, but he predicts the S&P 500 will likely grow between 4 and 6 percent over the next 12 months.
Right now, there are some smart money shifting into financials, energy and technology stocks. We are not sure if this is key, but we do like to watch what the smart money is doing, and where they are going.
We don't think valuations are as extended as maybe some people would think given the run, If you look at the percentage of companies in the tech sector above their 200-day moving average, it's actually some of the best breadth we see across sectors.
fixed income and cash, as sectors that could burn investors with poor returns in the coming months, when compared to stocks. Either way, things are getting nervous in the market, and we will share our SECRETS and findings HERE with our VIP members each day. You can get your FREE 30 Day trial here.
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