I'm out of US equities as of last week. Own only UK-based stocks. Fear has really gotten a hold of me now. There are still cheap US stocks, but there are even cheaper UK equities - and it seems certain "left for dead" UK companies are beneficiaries of inflationary pressures! Makes making the jump easy.
To be clear, I'm not a hardcore "bear." I don't have any desire to short the market or try to time the market to my favour.
Truthfully, I have no idea how long this lasts, but it does seem momentum is slowing. Companies like CRM, META etc are proof of that. A 40% drawdown from here in the S&P 500 wouldn't shock me at all. But, as I reiterate, I have no position and talk is cheap.
The economy rarely plays into my thought process, but I do fear an inflationary resurgence in the back-end of this year. I suspect the UK Conservative Party think a similar way - else, why would they hold an election in the middle of the summer when they're already so far behind in the polls? (Answer - damage limitation.) |
