S&P 500 gapped lower and closed at weekly lows despite breaking out of base pattern
Interest rate hike concerns persist, but uncertainty remains about extent of market decline
International F fund positioning recommended between domestic S and C fund allocations
On Friday the S&P 500 broke out of that “building a base” stage, but gapped lower on the open, trended downward throughout the day, and closed the session and week at its low of 2127. Although pundits blame potential interest rate hikes for the drop, this scenario has been with us for quite a time. So the major question facing us is “Where now?” Is this the start of a sell off like we saw in January, or the quick drop and bounce back after Brexit? Since no one can predict the future, we’re recommending a 20 percent reduction in equity exposure to 75 percent, with the allocation in the F “International” fund sandwiched between the “U.S.” S and C funds.
Recommended Allocation (Moderate Profile)
This is our historical recommendation from this date.
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On Friday the S&P 500 broke out of that “building a base” stage, but gapped lower on the open, trended downward throughout the day, and closed the session and week at its low of 2127. Although pundits blame potential interest rate hikes for the drop, this scenario has been with us for quite a time. So the major question facing us is “Where now?” Is this the start of a sell off like we saw in January, or the quick drop and bounce back after Brexit? Since no one can predict the future, we’re recommending a 20 percent reduction in equity exposure to 75 percent, with the allocation in the F “International” fund sandwiched between the “U.S.” S and C funds.