Investors Should Tread Lightly
A tactical approach based on momentum would require that investors reduce their risk recently as volatility rose and trends deteriorated. Obviously no one knows what will happen going forward (ie is this a bull market or a correction) but from a purely qualitative perspective, the economic environment warrants more caution than usual. In general it is my belief that the global quantitative reflation is nearing the end of its course and overall efficacy. Like the last five episodes of “Breaking Bad”, investors can expect a wild ride with many different twists and turns. Read our recent post here.