It was a long time ago when we were able to see Phil Orlando, a market bull, cutting his exposures to stocks. Yet, it seems like the things are repeating themselves now.
It all started with the new threat coming from Donald Trump which says how they will impose an approximate amount of 5% of tariffs on all Mexican imports.
When we take a look at how things are going on the market, we can easily come to a conclusion about how downside risk is very expanded and how everything is still uncertain.
Yet, it also seems like how Orlando won’t be stopped by that, or at least, not this time. He also added how they have already lowered approximately 8% of their equity. Orlando talked about PRISM asset allocation growth and made a conclusion about how it was quite moderate with 5% growth in the portfolio.
When it comes to cash overweight, Phil said how they have also added 3% there. Although it may seem like how they have made a defensive move, they really know what they are doing. Supporting stocks having fundamentals under control where everything stays solid is their main point.
Besides that, it also looks like how they are waiting for the situation to calm down. Orlando is quite worried about the U.S. and China trade war.
What about the S&P 500? How will this all affect it? According to Orlando, it may even happen that it falls even to 2,650. Although that amount may sound really low, he also added how that is just 4% of declines coming from their current levels.
We can just wait and see what will happen with this situation and what plans Orlando has for the future. He believes how the investors are the ones that will make a huge change this month.