Tuesday, April 2, 2019

Time to Reduce Exposure to American Stocks?

I told my U.S.-based family members to raise between 10% and 20% cash in any and all stock/investment accounts. I personally wouldn't mind if my sister and brother-in-law increased their cash/money market holdings to 30%, but they are young, and their youth makes it hard to suggest a more conservative allocation. (It doesn't help that bonds paying interest in U.S. dollars seem to be fairly valued.) My parents, who don't generally listen to me, told me they're already all in cash. 

I am still holding onto my General Electric (GE) shares, along with various REIT and other preferred shares, but I do not see much value in U.S. equities markets as of April 2, 2019. 
Shiller P/E is one useful metric to consider for overall valuation.
I suppose Kraft Heinz Co. (KHC), which I recently bought, looks cheap, but its debt load is considerable, and I don't have many shares of it. I like a few other individual U.S. stocks besides GE, but I allocated a considerable amount of my holdings to GE at an average of approximately $12.50/share, and I'll wait for a turnaround. I do hold a few international companies, but none I like enough to suggest publicly. If you're reading this post, good luck, and do your own due diligence. I am not an oracle of anywhere when it comes to investing. 

Disclaimer: The information on this site is provided for discussion purposes only. Under no circumstances do any statements here represent a recommendation to buy or sell securities or make any kind of an investment. You are responsible for your own due diligence. To summarize, I do not provide investment advice, nor do I make any claims or promises that any information here will lead to a profit, loss, or any other result. I am not responsible for any harm arising from following anything construed as advice herein. 

Miscellany

1. S&P 500 closed on 2867 on April 2, 2019, the date of this post. 

2. GE stock is around 9.26/share mid-day April 8, 2019. 

3. KHC is around 33.22/share mid-day April 8, 2019. 

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