February 17, 2020
Weekly Market Outlook
By Keith Schneider
Small caps and value stocks continue to lag.
As I am writing this (Monday), the spread of the Coronavirus seems to be subsiding with Chinese markets bouncing.
Meanwhile, Berkshire Hathaway is sitting on its biggest pile of cash ever ($128 billion) while Charlie Munger warns of a market meltdown.
Our risk gauges also suggest that now is a risky time to be long stocks.
The Euro got hit hard this week. Its path toward its recent lows could US exporters, but help the US consumer.
If you’re thinking of chilling out and taking a vacation from whatever you do (such as reading this market commentary), Europe could be a much better deal than the Hamptons, assuming trade wars don’t ratchet up.
This week’s highlights are:
So, there’s a lot of mixed data that demands prudent risk control.
Passive buy and hold always looks best at new market highs, but of course, it has the highest risk.
If you’re interested in improving your ability to profit from the type of market uncertainty we’re facing right now….
Best wishes for your trading,