I will be flying to California tonight and plan to write a macro post on my way. Suffice it to say it was a horrible day for investors and exactly the reason I downgraded our view in January.
If we were worried about a 5-10% correction, why would we change our game plan to use the weakness as an opportunity when it happened. Corrections always come with the idea there is risk of fundamental change, otherwise no one would sell. I still believe this is one of those times, so look for our longer post tomorrow.
In summary, we expect an oversold bounce followed by a retest of the low. It is on the retest or break of the low that we want to become more offensive. For now, just sitting tight getting ready to add exposure in those areas that benefit from a flood of money that will be sent to help reduce the Coronavirus economic risk.
Past performance is not a guarantee of future results. Index returns are unmanaged and do not reflect the deduction of any fees or expenses.
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