Another positive month for the market is down in the history books! Last week, the Dow hit a record high, crossing the 15,000 mark for the first time. So far this week, that positive momentum has continued. The latest employment numbers were positive, confidence is rising, and we’re even seeing some quirky signs of a strong economy. Did you know that men’s underwear sales can be linked to a good economy? It’s true! Men buy more socks and underwear when times are good. Also, women’s hemlines rise, diaper sales increase, and we produce more trash. Take a look around, and you might just spot some of these signs of an improving economy!
So as the guys in your life continue to buy more underwear, we at Wamhoff continue the process of rebalancing our clients’ portfolios to pull money out of the market during this high and diversify into investments outside of the market. We’ve been in rebalancing mode for the last several weeks, and are happy with the moves we’re making.
While market highs have given us plenty of reason to rebalance, history and trends tell us that the summer months bring a good deal of volatility, so we traditionally like to take this time to make moves and remain cautious during the summer. Why is there so much volatility in the summer? Well, most folks are taking vacations, enjoying outdoor sports, and have a good deal of activity going on. That means they’re not watching their assets as closely, so the market is thinly traded. A thinly traded market is more volatile. For the next four months, I anticipate a cycle of one-step-forward and two-steps-back, then two-steps-forward and one-step-back.
Even though most people aren’t paying too much attention to their assets in the summer, you can be sure that I am! I’ll be watching the market very closely, and will continue to be cautious. Know that even when I am in Honduras, I am watching and paying very close attention.
If you, or a friend or family member, have questions about the market, or would like to talk further about diversification, please give us a call. We’ll help you understand the market highs, the anticipated volatility, and why men’s underwear has anything to do with any of this!
Stay healthy, wealthy and wise…and certainly, stay tuned.
Bob Wamhoff | Wamhoff Financial Planning & Accounting