Market Update June 8, 2020

I did a video to update where we are in US financial markets. I shared some commentary on the indices and on some sectors and thinking moving the market. Here is a bullet point summary if you don’t want to watch the video:

  • Market is unusually strong as buyers can’t seem to buy enough. Strong “internal” buying signals

  • If you’re in stocks, stay in and ride the trend. If you are 50%, 60% or 70% invested, stay invested but don’t chase the market with the remaining cash. Unless you are a skilled trader.

  • If you’re out of the market, think like an asset allocator and buy into out of favor sectors and build a gold allocation

  • Gold is a good allocation because to keep the game running, we will likely have much more government spending, and Fed stimulus.

  • Some interesting trends in the market include baby boomers selling and moving into RVs and the general move toward vacationing and being free in a way that does not involve being on a plane, a train, or in a crowded tourist area. Winnebago doing well as well as Polaris Industries (no positions in these).

I cover a bit more in my video here: