- Over the last few weeks, we have discussed much of what happens to the stock market both pre- and post-presidential elections.
- With no stimulus currently on the horizon and a resurgence of economic weakness, there is more than a reasonable risk we may see more disappointment in economic data ahead.
- We currently have more equity exposure than we are comfortable with.
- However, technically, there is no reason to reduce exposure as trends remain positive sharply, the sentiment remains clearly bullish, and volatility remains suppressed.
- We are still hedging portfolios by holding slightly higher levels of cash and adjusting the duration of the bond portfolio to mitigate drawdown risk.
For further details see:
Market Stumbles As Stimulus Hopes Fade