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Volatile markets- take profits & reallocate

Today the markets were extremely volatile.  The S&P500 closed flat but intraday dropped nearly 1.3%.  The NASDAQ closed up 0.54%.  It’s a very good sign when the market recovers from a deep stumble.

Weakness in global markets initially spooked Wall Street.

Volatile markets are a time for reflection.  I took this as an opportunity to take some profits and reallocate portfolios.  Over the past seven weeks the S&P500 has done well, up nearly 7%.  The transportation sector has done extraordinary, up over 12%.

Although transports may have further to run, they have gotten frothy, especially the airlines.  The S&P500 has been challenged by energy stocks and I believe multinationals & exporters with exposure to the strong US dollar still have further to fall.

I’m sticking with the trend of low energy, strong dollar, and stable or slightly rising interest rates.  Thus strengthening my positions in consumer staples and utilities.  I’ve also taken an entry position in a non-USA economy…can you guess which country?


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