The global selloff in stocks accelerated Thursday, sending the Dow down 3.6% to 10,068 while the S&P 500 lost 3.9% to 1071.59 and the NASDAQ shed 4.1% to 2204.
All major U.S. averages are now down for the year and at least 10% below their 2010 highs, meaning the downturn has officially entered "correction" territory.
We got a sell signal for Metropolitan West High Yield Fund (MWHYX) and subsequently sold it today. Additionally, I did sell various income funds for a number of new accounts that transfered in recently. Putnam Diversified Income fund is holding up very well and has yet to deliver a sell signal.
At the moment, the majority of our client accounts are positioned 70% cash - 20% bond/income funds and 10% in a long US dollar index ETF.
GWM clients have largely avoided the pain average buy & hold investors are feeling at the moment. If you have friends and relatives that are getting tired of have their money going on a roller-coaster ride every few years, encourage them to visit the Gerritz Wealth Management web-site at http://www.gerritz.com/. They are also welcome to subscribe free of charge to The Gerritz Letter, our monthly newsletter and Gerritz InSights, our daily blog.
Most people do not have access to a qualified Active Personal Portfolio Manager, yet alone think they can afford one; the reality is they can't afford not to have one. To start a conversation, just ask your friends if they are comfortable with their current investment program during periods of extreme volatility. I am sure they will appreciate your concern. Give them my 800 number and tell them to call me if they are interested in learning more about protecting their accounts at times like these.
Steve Gerritz 1-800-877-1967