There really is no place like home, which brings us to the housing market, and what it might mean for the US economy and US consumer as we battle back from the COVID-19 caused recession.
Advisors exhibited behaviors consistent with longer-term trends across the board. Allocation to cash remained unchanged this week at 4.09%.
Among the better-known Wall Street maxims is “Don’t fight the Fed,” which speaks to the idea that monetary policy and the trend in interest rates determines the direction of the stock market.
Allocations to cash were reduced by 21% this past week, the most significant drop in cash levels since crisis began.
Cash increased marginally from 5.11% to 5.25% last week. Cash is sustaining at roughly two times the average since early April. Advisors remained risk averse again this week favoring less risky assets, which is a continuation of long-term investing behavior.
Last week was a marked change for advisors with investment activity shifting back to fixed income categories.
For a big country, we sure have an affinity for little things. Think TV shows: “Tiny House Nation”; sayings: “Big things come in small packages”; and children’s books: “The Little Engine That Could” as being among the more obvious examples of our love of things little or small. It is a love of small things which brings us to the focus of this week’s Weekly Wire, US small cap stocks, and what the asset class might be telling us about the US economy and the US stock market as we approach the second half of 2020.
In a normal presidential election year, June headlines would be filled with speculation about who the White House challenger will pick as a running mate