“Note that US capital gains tax increases are expected to be among the highest in the world. That alone is a reason to move to a more defensive posture” — Paul Ebeling
Since the lows in March of Y 2020, the stock market has 2Xd. The S&P 500 closed at 2,237 on 23 March 2020 and closed Wednesday at 4,524.09, a 100%+ gainer in 17 months.
The concern situation for investors is that the market has not had a 5% pull back in almost a yr.
The Big Q for investors is what to do now?
The MSM and pundits have warned for the past few months that stock prices are very over extended, and while all the ingredients are there to keep the Bull running, it makes sense for more conservative investors to pivot to a defensive stance.
We are long-term Bulls and suggests investors with a long time horizon should be ready with dry powder for a market pull back..
Be prepared to buy down 8 to 12% or more, because the long-run trend is higher and pullbacks having been bought have been rewarded all along the line.
History tells us that September has a record of being a difficult month to navigate that ultimately yields to the buying opportunity in October.
Have a prosperous day, Keep the Faith!