We had a bit of a wild week in the markets last week.
There's been a sharp sell-off in emerging markets, a decent amount of geopolitical risk remaining, and commodities also had a pretty tough week.
We're starting to see a lot of large money managers talking about being risk-off at the moment.
This may be the reason why we're seeing a bid for what are known as safe haven assets like treasury notes or the USD. Investors typically look to these to avoid risks.
In Round portfolios, we remain defensive.
We've built up a larger than normal cash position and we'd like to stay risk-off until some of these risks subside.
On the brighter side, we're starting to see earnings season come to an end.
Over 80% of S&P 500 companies have surprised to the upside on the amount that they're earning.
This further solidifies our view of strong fundamentals in the U.S. economy.
As we're sitting in this funny zone where there's strong fundamentals coupled with these outside risks, we're waiting for these risks to begin to subside before we begin to leg back into the market.
Hope you have a great week ahead!
Disclosure: The 80% of S&P 500 companies who had earnings surprises statistic was as of 8/10/2018 and calculated by Guggenheim Partners.
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