Market Outlook in time of turmoil.
No market likes turmoil and no investor likes to be beholden to the volatile vagaries of the news.
Well, get used to it. If my forecasts “Institutional Anarchy” – see Thought for Monday – are anything like, then we are in for all the “news” we can handle and more. Here’s how to react
– Europe is in disarray – sell.
– the UK is in disarray – sell.
– the US foreign policy is a shambles – think Iran, N Korea, China, Canada, Mexico – sell.
But the US h0me market looks sound. So stick with US centric stocks, strong dividends, high cash flow, low P/E and low debt. If in doubt hold cash. Build your gold holdings on weakness.
More next week. Have a good day. James.
James is an advisor to the King wealth management group of Merrill Lynch.