Monday, July 31, 2017

Stocks are still risky to buy at these elevated levels

The S&P is up 23 percent since January 2016. Gold is up 20 percent and this year, Gold is up 9 percent but the GDX, the Gold ETF is up 80 percent since January 2016.

The risks have increased as stocks have gone up. Don't be overly optimistic. 

If you look at the market, there are lots of stocks that are lower, and significantly lower than they were at the highs. And so, it's not an all-clear signal.

My Asset Allocation Twenty-five percent in real estate; my real estate is mostly in Asia. Twenty-five percent in equities; I have mostly Asian equities. Then I have some precious metal and gold shares. I don't change that asset location a lot, but I am aware that there is a risk because if equities go down, then obviously all my bonds will likely go down.