Outlook for February 2017

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.

12 thoughts on “Outlook for February 2017

    • Its already giving me the option of moving when I see an amazing opportunity 🙂 Just picked up a beaten down stock in the gold mining sector earlier this week thanks to the amount of cash available.

      R2R

  1. I rarely keep a significant much cash on hand, but that is just me. By keeping that much cash you may miss out on a tremendous run, or conversely, you may be able to capitalize on a significant pullback. Time will tell. The key point to me is that you have a strategy and are committed to it. As an aside, I note that we own several of the same stocks, one of which is BCE, which as you are likely aware today increased its dividend by just over 5%. Anyway, good luck in making use of your cash hoard!

    • Congrats on the raise from BCE. Its always good to get a raise 🙂 Speaking of, I havent bought BCE in a long time..perhaps I should take this opportunity to buy more. The large cash position is a short term position — I dont intend to keep this amount for the long haul going forward. There are always some pockets of opportunity — just a matter of finding them.

      R2R

  2. Now all we’re doing is waiting for that stock market to ACTUALLY crash. To crash, stay crashed for a couple years, and to crash solely due to macroeconomics and investor sentiment rather than due to any change in the fundamentals of these companies.

    As I dividend investor with little access to investable capital for the time being, that wound be my dream. Of course, waiting around for the market to crash is a fool’s game, so I’ve been looking for undervalued dividend payers and investing my money there.

    Good of you to have cash ready to be deployed. When the market tanks (whenever that is), you’ll be ready.

    Sincerely,
    ARB–Angry Retail Banker

    • Haha…we’ve all been waiting for a crash. But the market always finds a way to humble us, doesnt it? 🙂 Trump’s election was supposed to be the end of the world, but the market has rallied like crazy since. The market does what it does…sometimes it makes sense, sometimes it doesnt. Either way, I am happy to sit on the sidelines, participate (via my current investments) and stay vigilant for opportunities with my cash position.

      Best
      R2R

    • I sure hope we get the correction sooner rather than later. The current investment sentiment is almost off the charts bullish, so Im hoping that will turn around soon. Meanwhile I sit patiently and wait with my bowl of popcorn 🙂

      R2R

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