Auxan In The News
Fox Business - July 11, 2016, “Why Asia Beckons Investors"
The Street – May 4, 2016, “Why We're Playing Defense"
Fox Business – March 3, 2016, “Why We're Bullish on Muni Bonds"
The Street – December 7, 2015, “Staying Cautious Until Rate Hike Impact is Clear"
Fox Business – November 9, 2015, “Keeping Centered in a Topsy-turvy Market"
Go Banking Rates – October 13, 2015, “5 Stocks to Buy Before Christmas”
Fox Business – October 8, 2015, “We’re Shorting the S&P and Holding Cash”
Springfield Business Journal - Oct 8, 2015, "Great Southern Doubles St. Louis Presence”
Yahoo Finance! – Oct 1, 2015, “10 Investing Tips for the Rest of 2015”
Fox Business – Sept 3, 2015, “Time to Get Defensive on Stocks”
US News & World Report - July 31, 2015, “Hot or Not: The Prospects of 8 High Profile Stocks”
January 2016 Market Update
At the close of 2015, we got several bearish signals and positioned our portfolios to be almost neutral to the stock market by buying ETFs with inverse stock market exposure (SH, SDS). In other words, our net exposure to the stock market is now very near zero. If the market weakness continues through the first week of January, we expect to get additional sell signals.
These are the most bearish signals we’ve seen since April/May 2008. The All World Index, which reflects global economic conditions, looks very similar to early 2008. There’s rarely a perfect parallel in the stock market, but general patterns do tend to repeat themselves and the current conditions are shaping up to look a whole lot like the market top in 2007-2008. That doesn’t mean the decline will turn out the same, but it does warrant caution.
And there’s a lot more than just one chart. Many other things that tend to accompany market tops have occurred in the past year. Some of these include:
Declining earnings for several quarters
Peak margin debt
Declining transportation index
Flattening yield curve
Deteriorating market breadth
High priced IPOs
Elevated M&A activity
Falling commodity prices
Trendlines breaking down
Aging bull market
High yield debt dropping
Stretched PE valuations
Manufacturing index below 50
There are a lot of reasons to be defensive right now.
Interested in learning more? Contact Auxan Capital Advisors, LLC to talk to a financial advisor Springfield MO to learn more about retirement planning and wealth management!
The commentary included in this blog is provided for informational purposes only. It does not constitute a recommendation to invest in any specific investment product or service. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.
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About the Author: Derek Schmidly
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