by Chris

September 11, 2019

I sold a lot yesterday. Like... a lot. So much of my portfolio is cash right now (yielding 2.32% with my Wealthfront cash account) and I'm content. Article after article I read about "uncertainty". I don't like that word...

Especially, after last year. Remember the Q4 drop? All of our gains erased for the year? 

Just to give you some context. This is how the S&P 500 did the previous year (2017).

You're reading that correctly. The S&P 500 yielded a negative return in 2018. That isn't normal... For my visual people, look at the chart for 2018:

If it wasn't for that dead cat bounce at the end, we'd be even worse off. There were "reasons", sure, but I'm not taking the risk this year. I have no problem sitting on some cash for a few months. What is bothering me is the uncertainty. Here are some articles to help highlight this:


Value stocks significantly outperformed growth stocks earlier this week. Why does this matter? Growth stocks have been outperforming value stocks for years. And in a single day, that flipped. Some investors think this could mean trouble for the broader market. I'm one of them.

Trade policy is up in the air and we just got news from North Korea that they want to come back to the table to negotiate surrendering their nuclear arsenal (and then fired some test missiles - go figure). If things work out with China next month, I might come back in but that's a big maybe.

And the last article pretty much says that the year leading up to election tends to be below average for equities (stocks). Why? "One big factor is the uncertainty created by the approaching election. Investors loathe uncertainty." Ugh... that word again.

I am looking for opportunities - so stay tuned. If something comes along that I just can't pass up, I'll be sure to share. But for now, I'm holding my dividend stocks (I just love monthly and quarterly payments) and cash.

What is everyone else doing?

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