I’m Keith DeGreen and this is your Investors Minute.
Let’s consider probabilities.
Here’s the downside: increased volatility lately; some short-term technical indicators seem soft; economic growth is painfully slow; and it’s been more than three years since our last 10%+ correction.
Now the upside: corporate earnings and sales are up: price-earnings multiples are reasonable; and most companies are projecting stronger earnings ahead.
Our analysts put the S&P’s six-month upside at about 10%. And get this: Since 1946, the S&P has never declined in the 12 months following a midterm election.
That market correction? Remember: we’ve rarely had a 10% correction without companies announcing projected decline in sales first – and that just isn’t happening right now.
Of course, anything can happen. But with exchange-traded funds we can spread our risks AND potentially enjoy the ride higher.
I’m Keith DeGreen. This has been your Investors Minute.
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