Caution investors – if your portfolio hasn’t risen +7.4% since the beginning of this year, you are underperforming! (Just for disclosure, I am underperforming the S&P 500 year to date!).
I’ve attached the above chart to show how parabolic things are going to get over the next little while.
I can just imagine clients telling their value managers about how much their friends are making on cryptocurrencies, marijuana, and also by people just dumping money in the top 10 large-cap companies, irrespective of any fundamental underpinnings of these corporations.
There are times in financial history where this has occurred before. I’m thinking 1999 or early 2000. It doesn’t end very well.
Raise cash. It is the most difficult trade to hold cash right now – precisely why it is correct.