Texas & western Iowa | IN555 - 12/4/2016 12:44
..... are we heading for a period of higher volatility?
In response to this question (and without discussing politics on this sub-forum), I'd say yes, at least until the investment environment becomes clearer. There has actually already been considerable sector rotation in the last several weeks. For example, out of bonds, tech stocks, international equities, and into large financials, oil, USD, etc. But these types of things can be expected with new administrations.
So far, the VIX has not reflected this as unusual volatility. The Shiller PE10 ratio is somewhat high, but not unusually high. I stay diversified and am satisfied with my current mix. Going forward, however, I wouldn't be adding to long duration bonds or anything containing MBS's.
Unknowns in the markets can have surprises, both good and bad. Be patient, but be vigilant.....
Edited by PRNDL 12/4/2016 19:31
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Will trump change the market participation?
