Outlook for August 2017

Markets continue their march higher, although some cracks are starting to appear. Amazon, one of the big five that is shouldering this stock market missed big time with their recent quarterly earnings, missing earnings by a massive 77%. There are other major issues on the horizon as well, with margin accounts sitting at record, auto-loan delinquencies piling up, household debt load skyrocketing, pensions debacle starting to unwind, US debt-ceiling on track to hit early October and many many more. Even with all these macro risks, investors continue to pile into the stock market and the volatility gets suppressed to a record low level. The following tweet illustrates how low the volatility currently is. Calm before the big storm?

Outlook for August 2017

I continue to wait for the fat pitches except for putting money into index funds and more specifically in the resource sector. The commodity market is at a record low compared to the rest of the stock market when compared over previous cycles, giving me more confidence to go contrarian. Even bond king, Jeff Gundlach has now gone public calling investors to short S&P 500 and look at gold as an attractive investment. I will be looking to make some moves if this stock market corrects, but until then, I will be nibbling small amounts here and there.

Looking for some investment ideas? Be sure to check out the Top 2017 Investment Picks from the blogging community.

Our current portfolio looks like this:

As it stands, our portfolio diversification is as shown below.

What is your outlook for August 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.

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