Outlook for May 2019

It’s earnings season amid record low volatility — which is turning out to be interesting to watch.

Companies are clearing the low set thresholds easily with comparable or declining revenues and high earnings thanks to the record buybacks. For instance, Apple’s latest quarterly result show very similar numbers as they were four years ago, but trading at high price thanks to the reduction in share count.

On the central banks front, non-US central bankers are caving to the reality. From the Canadian CB to a handful of European CBs, all have changed their tones and dropped the rate hike bias completely — and already discussing rate cuts. This week’s communication from the Fed also confirms that rate hikes for this cycle are over.

Outlook for May 2019

I’ve had a fairly large contribution to my investment accounts over the last couple of months, so I have been looking to deploy more of my cash instead of staying on the sidelines with an oversized cash position. The Q4 2018 correction was a good opportunity to put cash to work, and although I did pick up some shares, I wish I had bought more. Nevertheless, I will incrementally continue buying more and putting my cash to work in the coming weeks.

I am also looking to build my core portfolio a bit more and trim on the moonshots (aka losers/mistakes) that are littering my portfolio. So, my portfolio could use some spring cleaning in coming days.

As of Apr 30, 2019 our portfolio is diversified as shown below.

Looking for investment ideas? Check out this Top Investment Picks for 2019, where 30+ investors present their top pick and a reason to invest in those securities.

What are your thoughts on the points mentioned above? Do you have any specific thoughts on the markets and looking at anything interesting? Are there any stocks that you believe is severely undervalued currently? Share with a comment below.

Full Disclosure: Our full list of holdings is available here.

5 thoughts on “Outlook for May 2019

  1. nice road.

    Interesting to see that apple post.

    Good to see you putting that cash to work and i look forward to see what you decide to buy.

    its crazy to see how bearish govts have become on these interest rate hikes. I knew the rise would be slow but am surprised to hear all the talk about lowering the rates again.

    We will see what happens.

    cheers road!

    • yeah theres a big disconnect between the stock and bond markets. People usually say when there is divergence, to pay more heed to bond markets…but so far, the stock market is just flying high. Who knows what the future brings…

      R2R

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