With June now here Old_Skeet has throttled (rebalanced) to his summer asset allocation by reducing equities and raising cash in the process along with expanding his base in asset allocation funds. This was done based on a seasonal investment strategy where I generally load equities in the fall, winter and begin to lighten up in my equity positions come spring. Those that have followed my post know that I do this in a process and not all at once. In addition, I use my market barometer to assist me in setting my equity allocation. The barometer reading peaked in March as new market highs were reached in the S&P 500 Index and has been softening since then. The breath feed in the barometer indicates the number of stocks above their 200 moving average has been in decline for a couple of months. However, no buy signal has yet been generated by the barometer. Some of my investment buddies that follow the big money crowd have noticed they are moving into energy. I think this is worth watching as I am currently overweight in energy at this time. Generally, I strive to maintain at least a five percent weighting in the minority sectors and a nine percent weighting in the majority sectors leaving seventeen percent that can be moved around with no sector being greater than fifteen percent. No doubt, tech has been the big dog of recent but just how much higher can it go? Perhaps, through the summer and as we move into fall a new leader(s) will emerge.
Another concern that I have with this market is that big money has it leveraged up and when they cut and run ... Well, we are in for a big pullback that could lead into a correction.
I am still with my market call (made at the first part of the year) that the S&P 500 Index will reach 2475 (or thereabouts) sometime during 2017.
For me, it is time to take a break and enjoy summer.
I wish all "Good Investing."