For the last few weeks I’ve been working to shift gears in my online portfolios in anticipation of a tougher market after the Federal Reserve meeting (and a likely additional interest rate cut) on September 18.
I’ve added Treasury ETFs–the Vanguard Intermediate-term Treasury ETF (VGIT) and the Vanguard Short-term Treasury ETF (VGSH)–because I think the Fed will continue to cut interest rates and because I think the economy will slow in 2020.
I’ve added gold–the SPDR Gold Shares ETF (GLD) and Barrick Gold (GOLD). And silver in the form of First Majestic Silver (AG) and Wheaton Precious Metals (WPM).
All in an effort to hedge risk on the remainder of my portfolios and because I think these ETFs and stocks will go up and turn a profit.
Which, if I consider today’s plunge on China’s decision to weaken the yuan a dry run, is exactly what these picks look likely to do.
A reminder of how the market closed: The Standard & Poor’s 500 was down 2.98% on the day; the Dow Jones Industrial Average was lower by 2.90%; and the NASDAQ Composite finished in the rd by 3.47%.
On the other hand, the two Treasury ETFs closed the day ahead 0.63% for the Vanguard Intermediate-term ETF and 0.20% for the Vanguard Short-term ETF.
The SPDR Gold Shares ETF closed higher by 1.41%.
Shares of Barrick Gold were up 4.02% on the day; shares of First Majestic Silver closed 4.92% ahead; shares of Wheaton Precious Metals closed higher by 1.41%.
The SPDR Gold Shares ETF was up 1.40%.
Of course, the drop today wasn’t etched onto my radar screen. Things have moved more quickly than I expected. By a long shot.
But I am left with many of the same questions that I had before today.
Is the market going to slide into a generally downward trend–and how quickly?
Is everything in the general market going to fall or will some stocks show green on a board of red? (Tyson Foods (TSN), bucked the general downward trend and closed up 5.10% today on an earnings beat.) You can paraphrase this question as What should I sell?
Have I missed the best opportunities in gold, silver, Treasuries, etc.? Should I buy more of the same stuff? Should I look for other alternatives in these or related asset classes?
Those were the key questions I was going to answer in the Special Report: Is You Portfolio Ready for the Next Big One? A 5-step Strategy to Get Ready that I was going to post tomorrow on my JubakAM.com subscription site. (If you don’t already subscribe to that site, yoll get an email tomorrow offering you 20% off the usual rate in case you want to read the full report.)
I’m going to move ahead on that Special Report and you can expect it on the JubakAM.com subscription site before the close tomorrow. In it, among other things, I’ll look at the odds of a recession and a credit crisis and suggest a possible timetable.
But I’l also going to add a section to that Special Report that describes a step-by-step approach to getting ready, along with a scheduled for doing what when.