"Blessed are the flexible, for they will not get bent out of shape!"
You won’t find that "beatitude" in Scripture, but it is true — and it came to mind this morning as we opted to alter the SMI publication schedule this week in light of changing market signals:
The March newsletter, originally slated for online publication today, has been bumped back to Friday.
The monthly DAA and Sector strategy updates are being moved up by one day — they will be posted tomorrow.
Here’s why: February is a short month, which means there are fewer days for assessing the various market signals that inform our fund recommendations. Fortunately, the market’s DAA and Sector signals are clear enough that we feel confident releasing them tomorrow, a day earlier than usual. On the other hand, we think it’s wise to wait an extra couple days before making the final March Upgrading decisions, given the implications this week’s market volatility has had on growth vs. value stocks.
In light of those schedule changes, we’re rolling out the weekly Roundup today, rather than on Friday.
12 things I remind myself when markets go crazy (Ben Carlson, A Wealth of Common Sense). The "fear of missing out" can make it difficult to make level-headed investing decisions.
For stocks, this bond selloff isn’t like the others (The Wall Street Journal via Fidelity). Rising interest rates are influencing how some stock sectors are performing. For example, shares of financial companies, which would likely benefit from higher interest rates, have been gaining.
Wise words on surviving bull markets (Jon Petersen, Novel Investor). Some good quotes here, including, "I view diversification not only as a survival strategy but as an aggressive strategy, because the next windfall might come from a surprising place" (Peter Bernstein).
My 2020 investment lesson: The peril of overconfidence (John Rekenthaler, Morningstar). "Never had I been so confident in my stock-market expectations — and rarely had I been so wrong."
Why not just print and give away money infinitely? (Josh Brown, The Reformed Broker). Quoting economist Allison Schrager: "I’m not comfortable with the precedent that every time we have a shock, we send people checks (paid for by monetized debt), whether or not they suffered any actual economic setbacks."
CBO: Public debt to surpass 200 percent of GDP in 2051 (The Hill). Government budget forecasts are never accurate, but the trend is troubling — and getting worse.
Financial guru Dave Ramsey is selling his $15.45 million Tennessee estate (Dow Jones via Morningstar). He bought the property (with $1.5 million cash) 13 years ago and had the house built.
Failure to report cryptocurrency on your tax return can lead to trouble with the IRS (CNBC). "The IRS has put crypto front and center for this tax-filing season."
McDonald’s joins the fierce fight for chicken sandwich supremacy (New York Times). Interesting fact: Despite being closed on Sundays, Chick-fil-A’s 2,500 franchise locations averaged more in sales in 2019 than McDonald’s nearly 14,000 restaurants.
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