S&P 500, DOW & NASDAQ all set record highs…the winning streak continues

Today the major US indices all set closing record highs.  We’re now in something like the 7th week of a continuous record setting rally.

The “experts” are mixed on their prognostications.  Some think this rally will continue, others believe a pullback is imminent.  The savvy pundits just mimic current market conditions.

UBS Wealth Management is the world’s largest wealth management firm with over $2.4 trillion under management.  They’re arguably the go-to advisor for the world’s jet setting billionaires.  In August, when the market was in the midst of a downturn, UBS issued a bearish call to “underweight” stocks, along with statements like:  “We do not see this as the best environment for taking risk on stocks.”

Now that the market has recovered and is up over 9% from the August lows, UBS “thinks equities should make up a standard proportion of investors’ portfolios.”

So where can you receive credible information about market direction?  Nowhere!!!  No one can predict the future or accurately dowse market movements.  Forecasts are just an assessment of probabilities.  Nothing more.  Investing is a risk, there is no certainty.

That’s why when constructing a portfolio, it’s important to use techniques to mitigate risk.  In a recent interview with Andrew Stotz, I discussed risk mitigation using several methods including diversification, position sizing, and Protective Puts.  You can listen to the interview here:

https://myworstinvestmentever.com/ep150-john-pugliano-diversify-your-portfolio-to-beat-overconfidence-and-use-a-put-to-avoid-regrets/

As always, invest with caution.

——————————————————————————

The Robots are Coming: A Human’s Survival Guide to Profiting in the Age of Automation  available at AMAZON and all fine bookstores.

——————————————————————————

Listen to the Wealthsteading Podcast to receive updated market commentary:

www.wealthsteading.com

The 10 Wealth Building Principles can be heard at:

http://www.wealthsteading.com/category/wealth-building-principle/

Subscribe to the Wealthsteading Podcast:

via iTunes:  https://itunes.apple.com/us/podcast/wealthsteading-podcast/id896417058

YOUTUBE:  www.youtube.com/c/JohnPuglianoWEALTHSTEADING