All In!

In recent posts, I have been highlighting the brittle nature of the stock market and have been emphasizing that we are at a time when capital preservation should be a key focus for investors. Stock market valuations are stretched, technical patterns are suggesting that a topping formation is in the works and investor confidence is back to previous highs. A great example of this ebullience is captured in the chart below, which measures the total assets currently held in cash via the popular Rydex Money Market Fund. When investors are in a bullish mood, they feel little need to hold cash in their portfolios. Today, cash fund balances are at an 18 year low. 

 
 

With interest rates on the floor thanks to decades of central bank money printing, investors have been forced to reach for yield and make ever-increasing risky investments in order to try to generate a return. Many will be taught a harsh lesson when markets turn.

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 brian@secureinvestments.ie 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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