The Stock Rally Continues

After a two day pause earlier this week, stocks are finishing the week strongly. As of Friday afternoon just before the close, the SPY is trading just above 285; a level we haven’t seen for about a month. Yay!

Of course, stocks are still quite a ways below the all-time highs in February just before we came down with the virus. To all of my friends who read these blogs I say, “Please be careful and safe.” I can’t think of many things more important than your health. Even if some people are tooling around as if they didn’t have a care in the world, there is no reason for us to take thoughtless risks. I don’t know if the virus pandemic justifies the extreme measures worldwide governments have taken. But I can’t say for sure the measures were NOT justified. I will continue to be careful and take prudent risks when I feel they are justified by what I stand to gain.

That risk management philosophy is what informs my investment methodology. As of today, we have about 68% of our portfolios in cash. We sold stocks and real estate before the crash. We bought on the way down. We sold on the way up. Now we will stay cautious and wait for the crazy market swings to calm down.

I’ve been in touch with my clients this week to let them know exactly where their accounts stand so far in 2020. They are very pleased.

Please let me know if you would like some help with your portfolio. I’d be happy to review with you your life and retirement situation from a risk management perspective.

Have a great weekend.

Dale