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My Optimism is Fading on Friday the 19th

During this week, I was hopeful we would see some kind of snapback rally off the recent stock market lows. At this writing, 12:42 Central time, I’m beginning to have doubts.

It seems that every upward move is met with relentless selling over night. Today, there was an upward move in the morning that didn’t quite get ahead of yesterday’s close followed by another selloff. We may still see a rally before the end of the day, but I doubt traders will want to stick their necks out by going long stocks into the weekend. Only institutions or the fabled government plunge protection team have the staying power to buy today without worrying about another possible 20%-30% downside.

No, I’m not going to go to cash. We have about 38% in cash right now, so we’re fine. For the diversified, conservative portfolio, we have about 23% in stocks acquired in the last two weeks. After all, I don’t manage the portfolios based on how I feel or what I predict. We could hear announcements over the weekend that cause the stock markets to open 10%-15% higher, for all I know.

Stay safe. Be kind to yourself and others.

Have a good weekend.