So far, 2014 has been a complete rollercoaster. After a sad start to the year and a small sell-off in January, we got a nice rebound, recently getting back to new record highs on the S&P500. Strength in Technology and Healthcare have remained constant, though. What we found more interesting, however, was the strength of the Utilities sector. That is usually not a good sign. But since the recent run-up, Utilities have started to fade into the background. We think this is good news going forward for the next few months.
In the grand scheme of things, the overall market trend continues to the up-side. Even with the January pull-back, we never saw enough weakness to indicate that major changes were necessary. Current trends are suggesting the upside will continue at least until “Sell in May…” arrives.
We really didn’t expect to be saying this, but for the time being, we may also like bonds. BUT, and this comes with a big BUT, we only like them in the short term. While interest rates on the 10 year US Government Note relaxed a bit, we are watching for them to find new footing and continue their march upward. Tread with caution….we are.
Finally, don’t forget to make contributions to your IRAs (Roth or Traditional) soon. The April 15th deadline is looming and you can make, or max out, your 2013 contributions until the deadline. If you haven’t already done so, it’s a great idea.
Contact us for more information or to get this done for you: info@shadowridgeinvest.com