So, for the balance of the summer, I will be making minor adjustments to portfolios to clean out minor positions and offset the capital gains that we have realized so far this year. I don't expect to take any major positions in the stock market until the rally is on much wider and firmer ground. I caution each of you to be very selective in any other investment you make in this market as the direction of interest rates is not yet settled. Furthermore, stocks in general will not head higher until the fed begins lowering interest rates sometime in the future. We are in a stock pickers market and caution is the watchword.
Stock prices are by their very nature volatile.
And they are also very easily converted into cash, a real benefit. Depending on your financial circumstances, volatility is not to be confused with risk. Stocks are not inherently risky, even though they are volatile. While volatility can be measured and dealt with as a statistical phenomenon, risk is of a different set. Risk is an interpretation or assessment that a person makes about a given set of circumstances.