It’s really hard to know what the next right move is. On one hand, things seem to be going well, and the charts are pointing upwards. This is nice to see, but how long can it last when the markets continue to reach new highs?
There is one big sign that seems to point to an downturn: the US Federal Reserve has halted interest rate hikes indicating economic growth is slowing, and in Canada interest rates continue to sit still. But it’s a question of when. We must be nearing the edge of the precipice (maybe that’s a bit dramatic – but I do think stocks are generally overvalued at present).
But then part of what buoyed the S&P 500 to new heights were the first quarter results from the FAANG companies: Facebook, Apple, Amazon, Netflix, and Alphabet (formerly known to the markets as Google). So business appears to be good. Broadly speaking, consumer confidence seems to be okay. The VIX, which measures how much investors are willing to pay to protect against a sell off of stocks, also looks alright.
Today I published a poll to Twitter asking people where they see the markets – see the results. So far, the majority are cautiously optimistic, and I think this is also where I sit. The ride may continue for a short while longer given that things are generally looking good. So I plan to monitor investments closely and keep cash ready for when the downturn does happen. What I plan to do isn’t to be taken as investment advice, it’s just what I think I’ll do based on my own risk tolerance and investment thesis.
And…. I also plan to further invest in Bitcoin.
