We are in cash and have been for the past many months. It is a historic fact that markets have continued to rise far beyond the rational argument that they should.
Here are the current reasons why – most have been in place for months:
Markets have risen for a continues period the length of which has not been seen before.
As a result of 1 (above) markets are at record highs.
We all know that records cannot keep being broken repeatedly over short periods – it is not the way that the world works.
The global geopolitical situation continues to be uncertain as to what lies ahead.
China, which it could be argued, now one of the main drivers of the world economy is slowing down. Can its record breaking growth continue and if not what are the consequences for the rest of us?
We know that when a crash/correction occurs in the markets it can be fast and brutal, frequently wiping out years of gains. Those on the other side of it can take advantage of the opportunities it creates, while the majority survey the wreckage of their ruined savings.
For these reasons we remain in cash.