Is there anything that will make investors falter during these times? The market seems to be resilient to any/all bad news that comes its way as things are brushed aside and the march to new highs continue. However, there is no dearth of major issues on the horizon, 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 in late Sep/early Oct and many many more.
Outlook for September 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. The following chart originally shared by Jesse Felder illustrates how relatively cheap investing in commodities is (read: its never been cheaper comparatively speaking).
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 September 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.