This week was filled with big news. The S&P 500 hit all-time highs rising just 0.8%.
The fundamentals look great:
- The Fed left the federal funds rate alone, which should push stocks higher.
- The job numbers were great with unemployment rate dropping to 3.6% – its lowest rate since December 1969
- IPOs keeping coming on strong – Beyond Meat (BYND) opened Thursday at 46.00 and ended the day at 65.75, a whopping 42.9% gain in a day
From a technical perspective, things don’t look so great. We’re bumping up against a strong resistance point and a bearish hanging man pattern has formed on the weekly chart.
Berkshire Hathaway (BRK-A) just reported that they have bought Amazon (AMZN) stock.
Berkshire is also hosting their annual shareholders meeting this weekend.
On a personal note, my Roth took a beating this week with my top holding Arista Networks (ANET) getting hammered because of weak guidance.
As is the case most weeks, all this news does nothing to change my overall strategy.
- Keep a healthy emergency fund of at least 6 months living expenses
- Keep 25% cash in my individual stock accounts when markets are at all-time highs – ready to deploy that cash in the next correction or bear market
- Keep on dollar-cost averaging in my mutual fund accounts, which are 100% stocks since I have a 20+ year time horizon
How are you guys handling the market? Share your thoughts by commenting below. If you like this post, share it on social media.
I/we are long ANET.
I wrote this article myself and it expresses my own opinions. I’m not receiving compensation for it (other than from Wolves Of Investing), and I have no business relationship with any company whose stock is mentioned in this article.
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Donnie Nguyen is the founder and CEO of Wolves of Investing. He started investing in the stock market in the early 2000s. He follows the teachings of Peter Lynch, Warren Buffett, and other investing legends. When he's not investing or blogging, he loves spending time with his family traveling and experiencing the world.
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