Watch Sector Rotation, Building Wealth, Investing, Retirement, Stock Market Trading, Money, Freedom

Episode 171:  This downtrend is persistent.  The pre-2016 market personality was one of “buy the dip” and move on to new highs.  That’s no longer the case.  Many sectors of the market are clearly in bear market territory, off their highs by 20-30%…or more.  Even fashionable stocks have been tarnished- Disney down 23%, Apple down 30%, Tesla down 44%, and LinkedIn down 61%.

The market personality has clearly shifted to a defensive posture, with rotation into “safe” sectors like Utilities, Consumer Staples, and Telecoms.  [In my opinion, all extremely overvalued.]  This occurs, because large institutional investors can’t simply liquidate their holdings and move to cash.  They’re required to stay invested.  So during troubled times, they hunker down in vanilla positions, hoping to ride out the storm with minimal damage.

The outcome depends on the magnitude of the economic storm.  Will these trouble times blow over, or will they develop into a Katrina level hurricane?

————————————————————–

10 Wealth Building Principles:  https://www.wealthsteading.com/category/wealth-building-principle/

Full archives are available at:  https://www.wealthsteading.com

————————————————————-

Subscribe to the Wealthsteading Podcast:

via iTunes:  https://itunes.apple.com/us/podcast/wealthsteading-podcast/id896417058

via STITCHER:   http://www.stitcher.com/s?fid=53115&refid=stpr

Hosted by John Pugliano. The Wealthsteading Podcast provides stock market commentary and investment insight based on 10 simple wealth building principles.

For more information visit us at: www.wealthsteading.com or www.investablewealth.com

Copyright © 2016 Investable Wealth, LLC. All rights reserved. This podcast is for informational purposes only and is not intended to be a solicitation, offering advice or recommendation of any security. This podcast does not intend to provide investment, tax or legal advice. The content is strictly the observations and opinions of Investable Wealth, LLC. The information in this podcast is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. Investable Wealth, LLC is an investment advisory firm licensed in the State of Utah.

————————————————————–