{"id":48103,"date":"2019-08-29T09:10:38","date_gmt":"2019-08-29T14:10:38","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48103"},"modified":"2019-08-29T09:10:40","modified_gmt":"2019-08-29T14:10:40","slug":"8-reasons-to-hold-some-extra-cash","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48103","title":{"rendered":"8-Reasons To Hold Some Extra Cash"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/realinvestmentadvice.com\/8-reasons-to-hold-some-extra-cash\/\">8-Reasons To Hold Some Extra Cash<\/a><\/h3>\n\n\n\n<p>Over the past few months, we have been writing a series of articles that highlight our concerns of increasing market risk.&nbsp; Here is a sampling of some of our more recent newsletters on the issue.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><em><a href=\"https:\/\/realinvestmentadvice.com\/never-hurts-to-ring-the-cash-register-05-03-19\/\" target=\"_blank\" rel=\"noreferrer noopener\">Never Hurts To Ring The Cash Register<\/a><\/em><\/li><li><em><a href=\"https:\/\/realinvestmentadvice.com\/selloff-overdone-looking-for-a-sellable-rally-05-31-19\/\" target=\"_blank\" rel=\"noreferrer noopener\">Looking For A Sellable Rally<\/a><\/em><\/li><li><em><a href=\"https:\/\/realinvestmentadvice.com\/sp-3300-the-bull-vs-bear-case-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bull vs. Bear Case<\/a><\/em><\/li><li><em><a href=\"https:\/\/realinvestmentadvice.com\/bear-markets-understand-them-dont-fear-them-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">Don\u2019t Fear A Bear Market<\/a><\/em><\/li><li><em><a href=\"https:\/\/realinvestmentadvice.com\/risk-happens-fast-is-the-selling-over-08-09-19\/\" target=\"_blank\" rel=\"noreferrer noopener\">Risk Happens Fast<\/a><\/em><\/li><\/ul>\n\n\n\n<p>The common thread among these articles was to encourage our readers to use rallies to reduce risk as the&nbsp;<em>\u201cbull case\u201d<\/em>&nbsp;was being eroded by slower economic growth, weaker earnings, trade wars, and the end of the stimulus from tax cuts and natural disasters.&nbsp;<a href=\"https:\/\/realinvestmentadvice.com\/technically-speaking-a-warning-about-chasing-this-bull-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">To wit:<\/a><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><em>These \u201cwarning signs\u201d are just that. None of them suggest the markets, or the economy, are immediately plunging into the next recession-driven market reversion.<\/em><\/p><p><em>However, The equity market stopped being a leading indicator, or an economic barometer, a long time ago. Central banks looked after that.&nbsp;<strong>This entire cycle saw the weakest economic growth of all time couple the mother of all bull markets.<\/strong><\/em><\/p><p><em>There will be payback for that misalignment of funds.<\/em><em>\u201c<\/em><\/p><\/blockquote>\n\n\n\n<p>As<a href=\"https:\/\/realinvestmentadvice.com\/technically-speaking-market-risk-is-rising-as-retail-sends-warning\/\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;I noted on Tuesday,<\/a>&nbsp;the divergences between large-caps and almost every other equity index strongly suggest that something is not quite right.&nbsp; As shown in the chart below, that negative divergence is something we should not discount.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/realinvestmentadvice.com\/wp-content\/uploads\/2019\/08\/SP500-MarketChart1-082919.png\"><img decoding=\"async\" src=\"https:\/\/realinvestmentadvice.com\/wp-content\/uploads\/2019\/08\/SP500-MarketChart1-082919.png\" alt=\"\" class=\"wp-image-422915\"\/><\/a><\/figure>\n\n\n\n<p>However, this is where it gets difficult for investors.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><em>The \u201cbulls\u201d are hoping for a break to the upside which would logically lead to a retest of old highs.<\/em><\/li><li><em>The \u201cbears\u201d are concerned about a downside break which would likely lead to a retest of last December\u2019s lows.<\/em><\/li><li><em>Which way will it break? Nobody really knows.<\/em><\/li><\/ul>\n\n\n\n<p>This is why we have been&nbsp;<em><a href=\"https:\/\/realinvestmentadvice.com\/technically-speaking-this-is-still-a-sellable-rally\/\" target=\"_blank\" rel=\"noreferrer noopener\">suggesting raising cash on rallies<\/a><\/em>, and rebalancing risk until the path forward becomes clear. Importantly:<\/p>\n\n\n\n<p>&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>8-Reasons To Hold Some Extra Cash Over the past few months, we have been writing a series of articles that highlight our concerns of increasing market risk.&nbsp; Here is a sampling of some of our more recent newsletters on the issue.&nbsp; Never Hurts To Ring The Cash Register Looking For A Sellable Rally Bull vs. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1035,1450,1849,8511,15470,1264],"class_list":["post-48103","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cash","tag-equity-markets","tag-financial-markets","tag-lance-roberts","tag-real-investment-advice","tag-recession"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48103","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48103"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48103\/revisions"}],"predecessor-version":[{"id":48104,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48103\/revisions\/48104"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48103"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}