Monday the market was down a little, Tuesday it was down a lot, Wednesday the market started down, and then about 2pm the Federal Reserve Board suggested that due to slowing global growth they were not going to raise interest rates yet and the market reclaimed most of its loss this week. Thursday the market was down big and Friday it was down again. We may be at the place where the market starts ignoring the Fed. That would be a bad sign since the market has been held up by the liquidity the Fed has been providing. Currently the Fed has a balance sheet of 4.4T in investments it has purchased to provide liquidity. Imagine the market when the Fed finally sells all its 4.4T. I just cannot see the market going down anymore before the election because a down market is bad for those in power.
Consuelo Mack’s program Wealthtrack featured Nancy Lazar on 03Oct. Ms. Lazar explained why the US is the driver of global economic growth and suggested that to profit from this growth an investor should buy UUP – an ETF which follows the value of the US dollar. UUP is up 6% for the 3 months.
Doug Fabian produces a weekly podcast where he discussed the weekly market events fraturing recommendations on ETFs. On his web site you can sign up for his free weekly e-newsletter. Lately in one of the segments on his weekly podcasts he has been discussing three aspects of the Obama legacy. One aspect is on the continuing increase in taxes (scheduled to increase for at least the next 6 years), a second is on the inability to continue to fund new programs (obamacare and others), and the third is on the requirement to reduce entitlement payments (social security, medicare, etc.).
Gary Kaltbaum, www.garyk.com, has a nightly radio show you can replays on his web site. On his 10/10/14 show he said the latest market actions look like a repeat of 2007.
IBD TBP’s Current Outlook is “Market in correction” – Not a time to invest. This was one of my worst weeks ever. SBiotechnlogy was down 7%, SElectronics was down 10%, SHealthCare was down 4%, SUtilities was down 2%, and SPharmaceuticals was down 4%
My current investments:
SBiotechnology has a price of 204.26 a sell price 208.07, a rank of 06, and is a Sell.
SElectronics has a price of 69.97, a sell price 76.99, a rank of 90, and is a Sell.
SHealthCare has a price of 213.66, a sell price 211.32, a rank of 01, and is a Hold.
SUtilities has a price of 73.59, a sell price 71.68, a rank of 09, and is a Hold.
SPharmaceuticals has a price of 20.93, a sell price 20.71, a rank of 02, and is a Hold.
My portfolio changes this weekend:
IRA #1 – Sell SBiotechnology
IRA #2 – Sell Sbiotechnology and SElectronics
My portfolio market exposure after this weekend’s changes:
IRA #1 – 00% invested
IRA #2 – 60% invested