While a handful of technology giants continue to lead the broad stock market indices higher, a closer inspection of the averages reveals an alarming deterioration in the performance of a growing number of household names. The shares of Proctor and Gamble for example have plunged -22% since their 2017 highs. AT&T shares have dropped -22% in less than a year, while Coke has fallen -13%, IBM -18%, Johnson & Johnson -16%, Walmart -24% and General Electric a whopping -55%. If the economy was in such great shape, these bellwether stocks would not be struggling so badly.
The FAANG stocks are concealing a broader deterioration in the market and my indicators suggest that the smart money is heading for the hills. If the FAANG's break lower in the months ahead, we will see a sharp acceleration lower as everyone rushes for the exits. I lowered the equity allocation in my Active Asset Allocator strategy from 20% to 0% on 2nd March 2018 and am patiently waiting before I make my next move. Meanwhile, after a few months rest, Gold Trader is firing up again. Get in touch to find out how you can make low-risk, tax-free profits and only pay fees if you make money.
At Secure Investments, I advise individual clients on their pension and non-pension fund investment portfolios. To learn more about my Active Asset Allocator and Gold Trader investment strategies, please get in touch at email@example.com or 086 821 5911. If you are reading this via LinkedIn, why not visit Secure Investments and subscribe to get exclusive content for free. No spam, ever. Just great stuff.
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