Markets are showing a continued retracement across almost all asset classes, and have been throughout September. So is now the time to lower your investment exposure to the stock market and hold more cash for future opportunities — what traders like to call "dry powder"?
We are seeing the VIX Volatility Index — which we monitor and report on every day in our WealthPress stock market update — remain at a price level three times the riskiness of just last year. This shows the complete absence of stability in markets.
Liquidity is leaving the entire system and not just rotating into other forms of investment vehicles. Major hedge funds are taking profits and lowering their exposure in the run-up to the general election.
To top it all off: The S&P 500 is trading below its 50-day moving average, and there has been an overall decrease in investor participation within the stock market…
So what does this mean for retail investors? |
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