We have started to see tremors in the U.S. stock market since post Thanksgiving. As of the writing of this post, bitcoin has lost 20% of its value. Is this the beginning of a dramatic sell off or just a minor correction?
We are keeping any eager eye on a key ETF, the Vanguard Total Stock Market VTI which tracks more stocks than the Dow, S&P 500 and Nasdaq composite combined.
Indeed, there were warning signs back in Mid-November and this article on Seeking Alpha made the case to sell VTI back then. We are not sure what will happen with the market but we have moved to 80% cash to stay clear of any 40% to 50% corrections in this market. The warning signs are a bit ominous and you can click here to check out some interesting thoughts and charts.
Black Friday shopping was a bit of a bust and we are eager to see how the Christmas shopping season turns out this year but we are not optimistic. Inflation and supply chain issues have taken a heavy toll on people’s wallets and shopping ambitions so we just need to wait and see what happens with sales and the market.
In the meantime, we continue to crunch data and search for exceptional investments and it is clear that we aren’t the only ones that aren’t sure what is going on with the economy but we also recently sold all of our Apple stock as part of our move to cash. We are seeing to much resistance on Apple stock at $163 level and the company warned that iphone sales seemed to have slowed.
Stay tuned…