Wow…we are already one month done in 2017. Time sure flies by. Things are getting pretty interesting in the market these days. The stock market is continuing to set new all-time highs with the DJIA hitting 20K finally (not that the number really means anything). But there are some traders which are starting to question whether this “Trump rally” really is warranted and if the market is getting ahead of itself. The earnings expectations are still down and not rising anytime soon based on the forward guidance from most companies, so a broad market rise like this is raising some eyebrows.
Outlook for February 2017
On the Fed front, Yellen and her posse are sitting still as investors expect inflation to come roaring back, thanks to the trade wars and protectionist policies from Trump. In my opinion, these policies are not a reason for celebration in the markets, and the chaos brought about by this administration will only increase if continuing down this path. Needless to say, safe havens such as gold/silver/bitcoin are seeing lots of positive action in the new year.
Based on the current outlook, almost every analyst is bullish these days. The amount of groupthink has been a sight to behold. The media portrays a 100 point pullback in DJIA as a “market crash”! It just goes to show that these younglings either havent experienced real crashes or have amnesia from the previous decade. Lessons learned during the GFC are all forgotten.
On a personal font, not much has changed in my outlook. I sit on a cash-heavy position waiting for the fat pitches. In the meantime, I continue to put money into index funds, so I am still investing regularly and building my portfolio week after week. There are some great ideas thrown around in the Top 2017 Investment Picks if you are interested in new ideas from the blogging community.
Our current portfoliolooks like this:
As it stands, our portfolio diversification is as shown below.
What is your outlook for Feb 2017? What are your thoughts on the stocks mentioned here? Do you own them or are they on your watchlist? What do you think of the current market levels and buying here? Make sure to leave a comment below.
Disclosure: Our full list of holdings is available here.