Outlook for September 2017

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.

8 thoughts on “Outlook for September 2017

  1. That’s great news for commodities! (ie real estate…a package of commodities in every single family home! Couple that with 8 to 10 leverage on your money, fixed rate debt, a little inflation, and I think real estate (and commodity) investors will hit a grand slam. We’ll see though. August was record for my passive income thankfully, and I’m excited to see what SEP brings.

    Thanks for the report!

    Passive Income Dude

    • Thats an interesting thought process. Ive never heard anyone equate real estate as commodities — as they are considered different asset classes. But by referring to that as commodity, do you mean ‘real/hard asset’? Then yes, I see your point. I made a conscious decision last year to move 1/3 of my portfolio into real/hard assets — commodities + real estate, although I have gotten a bit ahead of myself there, with 1/3 of my investable portfolio just in commodities.

      R2R

  2. Thank you for the outlook. I would love to see a proper market correction. Sure, it would hurt our net worth, but at least we would finally get an opportunity to buy stocks at a lower level. However, every time the speculations about an imminent correction were on the rise in the past few years, the stock market teached us a lesson. That is why I am personally not yet convinced, that we will really see a major market decline in the foreseeable future.

    David (junginrente.de)

    • Hi David, I am in the same camp as you. Things have gotten out of hand and a market correction will be healthy for the overall market. The way it stands it just keeps looking worse when it will eventually fall…no thanks to the central bankers of course. As long as they keep printing money and buying stocks/bonds, this market continues to reach new heights.

      R2R

  3. Thanks for the update! Gold is certainly starting to look interesting here going into the fall. I’m very curious to see if the momentum can continue!

  4. Nice looking portfolio. Seeing almost 20% in cash seems like a lot to me but I guess you’ll always have something in the bank for the fat pitches that inevitably will come. I’m still looking at some of the weaker staples in Sept. Names like HRL and GIS come to mind. Thanks for sharing your outlook.

    • Thats the idea, DivHut. I am waiting for those fat pitches..and right now I only find them in the commodities market. With my portfolio positioned the way it is, I am holding back from backing up the truck in the commodities. Looking to hold some cash for the next downturn.

      R2R

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