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Wall Street’s Best Investments 827

Well, March in the markets certainly came in like a lion, didn’t it? And it looks like it may end the month the same way. Until we make progress in defeating the coronavirus, we expect continued volatility in the markets, and we recommend that you remain defensive.

That doesn’t mean Sell everything in your portfolio. Remember, you don’t have real losses until you sell your stocks. But it does mean if you are holding on to some stocks that weren’t doing well before the coronavirus outbreak, it might be a good idea to think about unloading them. But being defensive also means being judicious when buying. For the near future, I’m going to include this message in all my writings, as an alert that, certainly, you may buy these recommendations, but for most of us, they will provide entries into a ‘watch’ list that can be acted upon as the volatility disperses. Or you may find that you might want to nibble just a bit at some of them. That’s up to you, but please know that I’m here to help you with your investing decisions, so please don’t hesitate to reach out to me.

In the meantime, I—and our contributors—are very busy trying to find some great recommendations that will help your portfolio recover, once normalcy returns to the markets.

Read the Issue for more details.

Wall Street’s Best Investments 827

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Going Defensive
In light of today’s negative reaction to the Federal Reserve’s so-called “Emergency” rate cut to 0% on Sunday (in reality, a panic move), we are advising additional defensive adjustments to our Model Fund Portfolio, reducing allocations to Energy and Consumer Discretionary ETFs and increasing our allocation to Gold. This will reduce our Model Portfolio allocation to 55% invested, with a weighting emphasis on more defensive sectors.
James Stack, InvesTech Research, investech.com, 800-955-8500, March 16, 2020

Don’t Chase Rallies
The major trend is down. Oversold conditions are at record levels, though, and so a considerable rally could unfold. But I would expect a retest of the lows after that rally fades. The bulls are used to “V” bottoms for the last 7 or 8 years, but that may be changing finally. Wait for confirmed sell signals, and even then, don’t chase rallies.
Lawrence G. McMillan, The Option Strategist, optionstrategist.com, 973-328-1303, March 13, 2020

Stay the Course
The road ahead will be bumpy, but as we are always working with a long-term multi-year time horizon, we continue to stay the course with our broadly diversified portfolios of what we believe to be undervalued stocks, usually of dividend payers. We are not ready to go where top White House economic advisor Larry Kudlow went today in saying, “I think by the end of this year, we will be back to a strong economy,” but we will get through COVID-19.
John Buckingham, The Prudent Speculator, theprudentspeculator.com, 877-817-4394, March 16, 2020

To read the rest of this month’s issue, download the PDF.


The next Wall Street’s Best Investments issue will be published on April 16, 2020.

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