Rumors that Putin (Russia) wants to de-escalate the Ukrainian situation will rally the market (today) – news that nothing happened (if that is the case Monday) will cause the market to fall.
Geo-political events are starting to matter. Economic trade wars will slow down global economies. Travel business will slow.
Our suggested way to deal with this is – work towards reducing your risk factor – selling something on rallies – downsizing back to core positions – perhaps decreasing speculative names and adding to dividend names.
Determine what your core investment is – in percentages. How much in growth – how much in R&D companies – How much in dividend stocks – how much margin – how much cash. Then use strength to sell towards your percent numbers and buy on weakness to add to core positions on a dollar cost averaging plan.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor. Please refer to our web site for full disclosure at www.LivingOffTheMarket.com