The stock market lost more ground again today.
The US Dollar strengthened while oil and gold made strong moves to the downside.
The Euro is sinking as the European Community is facing likely recession. They seem to lack what it takes to come up with any plan other than austerity. None of the strong countries seem to be willing to essentially co-sign for the borrowing that the weaker countries like Greece and Italy need to do.
The market has decidely changed its outlook from inflationary to deflationary. That of course means you sell gold, hard assets and commodities in general. And that is just what they did today and will continue to do. Consequently, I took some small short position (via inverse ETFs) in gold and oil as well semi-conductors.
Our Core Equity folio is primarily invested in high dividend paying defensive stocks like Merck and Altria. I want to hold on to these longer term providing they hold up reasonably well.
Most of our other folios are also positioned rather conservatively. We do have a higher risk small cap ETF in our Long / Short folio. I will be monitoring the account closely.
Daily Market Snapshot
The market is getting weaker.
At the moment Santa is nowhere to be found.
By the way, the chart below shows just how bad the markets in other countries are suffering. Well, so much for those that say asset allocation and diversification will save you; it is a flawed notion.
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