Tuesday, January 16, 2018

Alfred E. Newman Stock Market

Those of you who remember the cartoon character from Mad Magazine, Alfred E. Newman, will recall that there was usually a caption saying, "What? Me Worry?" This market reminds me of that line. Nothing to worry about with this market. If you have been sitting on the sidelines, you are missing out on one of the strongest bull markets in American history.

The best place to be as an investor is fully invested. It is even better if you can regularly add to your accounts every month. However, there are pockets where you may want to re-position some funds.

There has been some quick and major changes in some sectors of the market. Some sectors such as real estate and utilities are showing some weakness. If you look at these two sectors on a chart, then you will see that there is no bottom in sight right now. A good reason to get out for now and take a wait and see approach as to when to get back in.

This is VNQ - Vanguard Real Estate ETF


This is VPU - Vanguard Utilities ETF



As you can see from both charts, they appear headed lower. A good reason to get out for now. This is a direct result of the new tax law that did no favors for the REIT and Utilities industries.

Thanks.