Market conditions are deteriorating amid continued economic uncertainty overseas, most notably in Greece and China. We’re avoiding all of the recent downturn in emerging markets since last Wednesday when we sold Vanguard MSCI Emerging Market ETF (symbol VWO) in all managed accounts (as well as any associated emerging market funds in various managed 401(k) and annuity accounts). Since last Wednesday, VWO is down my more than 6.15%, which we’ve avoided entirely. China is also getting a lot of media attention as it has dropped more than 13.6% over the past five days (which we’ve also avoided in this position entirely).
But weakness in U.S. markets is increasing, and clearTREND® has identified several adjustments that will be made over the next few days to further reduce exposure to the markets. This is in addition to real estate which was sold in late May. This position has demonstrated enough support (money is flowing into perceived “safe havens”) which raises the possibility that we may re-enter this position in the near future. Some bond positions are also deteriorating, which may also require adjustments which we are likely to make in the next few days as well.
Our entire portfolio management team will continue to monitor and adjust all managed positions accordingly. Please feel free to reach out to your assigned Appleton Group advisor with any questions.