Time to REDUCE? 2019 Market Update by James R. Wigen – Sr. Portfolio Manager

Last week we heard the Federal Reserve Chairman say their next move on the Fed Funds Rate could be to LOWER vs an INCREASE which was expected for 2019.  In addition last week, we saw another Inverted Yield Curve, which has been successful in the past forecasting a Recession is coming.

If you consider the news last week, and the China Trade War may be coming to a end, however, Trump already said even after an agreement has been made Tariffs will be kept in place to make sure China is living up to the final agreements, I would say the Stock Market is about done with any meaningful growth, and most likely, will decline.  Once the U.S. & China have announced an agreement, we could see a slight Increase in the Stock Market, however, it will be short lived as earnings season is coming, and I believe we will hear decent news from corporations but lower future expectations.

If you believe the Stock Market is close to declining, which very well could be substantial declines, it’s time to:

  • Start removing Equity Growth exposure
  • Increase Cash, in your brokerage account you will earn close to 2.25% currently
  • Keep 401k contributions in Conservative Stable Fund or Money Fund, look for stable Dividend Yields, you want the benefit of pre-tax contributions to continue,
  • Use Selling Covered Call Option strategy to generate income from your stocks, if your portfolio needs income 

Being SHORT the Indexes mean as they Decline, you MAKE money.

Make sure you check with me or your current Financial Advisor to make sure these strategies are right for you.

The Federal Reserve, Central Banks & Trump’s pro growth policies have been GREAT for the Stock Market the past 10 years, however, in my opinion, those days are coming to an end.

If you have any questions or want me to help with your investments, please contact me, [email protected] or 1-855-546-9443.







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