Media ININ Economy We Trust
With the continued decline in the markets, investors in “Wall Street” find themselves confused about whether to hold onto stocks in the hope of a turnaround, or is it best to avoid them until conditions improve and the vision becomes clearer.
At the same time, some investors want to increase their cash positions even though many of them now have 5-10% of their portfolios in cash, compared to their usual allocation which is much less than this, and may be willing to get another 20-30%, and that to compensate for stock losses.
The S&P 500 fell 23% over the year, with a brief rally in October, threatening to crash after strong US jobs data bolstered the case for an interest rate hike from the Federal Reserve that made fighting inflation a priority.
