Thu 3 Apr 2008
There is really very little to write about the equity markets right now. As I’ve indicated recently, the only sectors making any headway over the past few months have been gold, energy, and bonds. For the past few weeks, even those sectors have weakened.
Below is a three-month chart comparing oil (black line), gold (blue line), bonds (red line) against the Nasdaq (gold line). Since early March, the only one that has made any headway is the Nasdaq. The others have all given up ground.
This is a perfect time for investors to remain parked on the sidelines. The risk from being invested in the markets right now outweighs the prospects for any significant reward.
F.S.
Important Investor Information:
Past performance may not be indicative of future results.
Therefore, no current or prospective client should assume
that future performance of any specific Strategis strategy will be
profitable or reach its performance objective. Different types of
investments involve varying degrees of risk, and there can be no
assurance that any specific investment or strategy will be either
suitable or profitable for a specific investment portfolio. Certain
portions of this update contain a discussion of various positions and
beliefs as to current and anticipated market conditions, which are based
upon professional judgment. However, there can be no assurance that any
such position or belief will prove to be correct. In addition, due to
various factors, including changing market conditions, such discussion
may no longer be reflective of current position(s) and/or belief(s).
Finally, no reader should assume that any such discussion serves as a
substitute for personalized advice from Strategis or any other investment
professional.