Every day brings a new opportunity for me to disabuse myself of the belief that “nobody gets hit by a train they see coming.” Apparently, some people do. Social Security solvency is one such train, so too are the current presidential tariffs.
Those who are selling their investments today are likely to regret it. Regardless of one’s opinion of tariffs, the largest threat to large domestic stocks is their elevated prices in the face of high interest rates. I have written for some time how the math just doesn’t work. But hey, who needs math when there is social media?
We have sufficiently diversified our models away from concentrations in popular retail stocks in an effort to reduce risk and increase interest and dividends. Most of our portfolios are overweighted to government bonds, foreign stocks, and value stocks. While we can never completely escape the poor decisions of others, we saw the train coming and have done our best to get out of the way.
Call us with any concerns.