Wednesday, May 28, 2014

Will There Be A Recession? The Stock Market's Offering Some Scary Clues | Seeking Alpha

Will There Be A Recession? The Stock Market's Offering Some Scary Clues | Seeking Alpha



Here is a great article about why we need to be careful investing nowadays.  The author brought up the point of rotating stock sectors. Small caps and consumer discretionary stocks (XLY) are being abandoned in favor of consumer staples (XLP).  Secondly, people are buying bonds.  TLT, the 20+ year treasury bond has outperformed VTI, Total Market, by a long shot in 2014.  Thirdly, stock distribution is being done by institutions and individuals.  Down days are on higher volume than up days.  We need to re-arrange our portfolios to be defensive since we may indeed be at a stock market top.


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