So the question is, “Why did the head of the Federal Reserve Board have a couple of special meetings with the President?” Listening to the speculation there ware two main theories presented.
1. Saudi Arabia (SA) is so upset with the US that if the US releases the 28 classified pages of the 9/11 report or allows 9/11 victim’s families to sue SA, they will sell all $750B of their US bond holdings and remove any financial deposits in the US causing significant distress in the US financial markets. The speculation is that Bush classified those 28 pages because they showed SA was clearly responsible for 9/11 planning, funding, and execution.
2. Leading indicators indicate the 2nd quarter Gross Domestic Product released in July, will show a negative number and the revisions to previous quarters will show the same. The result is that after the release the criteria for declaring a recession will have been met. No in power political party wants a recession just before elections.
As I have previously mentioned before John Pugliano in his Wealthsteading podcast on 19Mar emphasized using the S&P500 100 day moving average. SPY which is an ETF which matches the S&P500 is at 205.67 and the 100 day moving average 199.47. His indicator would say it is time to remain invested.
Tonight Wall Street Week featured Jeffery Gundlach of DoubleLine Capital. Last month his funds, mostly bond funds, had an inflow of cash of over 1b dollars. He indicated that when economies are slowing down, most stock markets around the world are down, and the US stock market is within a percent or two from its all time high, having gone sidewise for 18 months, it is time to sell.
IBD TBP’s Market Pulse is “Uptrend under pressure” as of 04/21/16. Not a time to buy.
My current investments:
IRA#1 and IRA#2
SGold has a price of 22.69, a sell price of 22.51, a rank of 01, and is a Hold.
IRA#2
Telecom&Utilities has a price of 24.50, a sell price 23.28, a rank of 03, and is a hold. (ETF – PUI current stoploss 23.69)
RealEstatePortfolio has a price of 43.86, a sell price 41.67, a rank of 02, and is a hold. (ETF – REZ current stoploss 61.36)
JapanSmallerCompanies has a price of 14.25, a sell price 13.70, a rank of 13, and is a hold. (ETF – SCJ current stoploss 56.73)
My portfolio changes this weekend:
IRA #1 – No Change
IRA #2 – No Change
My portfolio market exposure after this weekend’s changes:
IRA #1 – 100% invested
IRA #2 – 80% invested