In Florida, we are now in the thick of hurricane season. One of the lessons to be learned about hurricane season is to be prepared for the unexpected. Who knows when the next "big one" will hit. It can be sunny and beautiful, but take a quick u turn at a moments notice.
The same thing goes for the stock market. The days of 2017 have been balmy and beautiful. Very few days have had large upswings or downswings. The flows into mutual funds and out of money markets is accelerating. The economic weather is great, but we know historically, the rains will come.
Being a busy beaver, I have been slowly pruning those tree branches (weaker stocks) and adding to my hurricane supplies (cash). The big storm may not hit soon but if it does, the highways will be crowded with those who have waited till the last second to respond. The result will be they will be stuck out on a highway parking lot in the worst position of all.
Over the last few years, I have enjoyed the warm and blissful economic weather, but as one wise man said, "Anything that can end, will end."
Now as your mom says "Don't forget your raincoat and your galoshes too!"
