What to consider:
- Probability of Recession remains low
- US Corporate Earnings and Revenue Growth expanding
- S&P 500 Market 2018 PE at 19.5 times, only marginally higher than 17 times long term average
- US yield curve steepening
- US Corporate bond spreads over Treasuries remain low
- Ensure that you are well diversified by: Asset Mix, Currency, Equity Sectors
- Always maintain a cash reserve to minimize volatility
- Gradually use market declines to buy quality companies that have solid earnings, cash flow, dividend and revenue growth
- Do not be tempted to buy bitcoin and pot stocks despite their price declines
- Buy equity sectors like banks and insurance companies that benefit from rising interest rates.
- Take your time investing your cash surplus. You will have plenty of opportunity to look at the fundamentals of companies. Do not just look at the companies’ share price.
If you like this blog post, why not sign up for all my blog posts for free, right to your inbox?
I’ll also send you a complimentary copy of my latest newsletter and model portfolios.Try for free here