The Day After the Fed Capitulated

At the time of this writing, the S&P-500 has given back 7.5% of the 9.5% last minute rally from last Friday, 3/13. This after the Fed lowered interest rates to basically zero, then started QE four. You can forgive people for thinking that if the Fed took such drastic action, things must be worse than we’ve been told. So they are out selling.

At this moment, our moderate risk portfolio is allocated as follows:
Gold – 30%
Silver – 10%
US Stocks – 16%
Real Estate – 0%
Bonds – 0%
Cash – 41%
Miscellaneous – 3%

Even with that much cash, we are seeing 3% swings during the day.

So, we have plenty of dry powder, but right now, its a risk management exercise.

Be safe out there.