Time to Get Defensive

It will not be surpising to see US equities pullback 2 to 3 percent from here, and then push higher to a new rally high near the end of August. This will help to pull in the public money as the insiders continue to sell, distributing their stock and taking their gains.

But from what we are seeing, September and October look to be particularly 'risky' months this year, and now might be a good time to become more defensive in those accounts that are not agile, like 401k's.

What is 'defensive?' Cash is good, and short term government bonds of less than 2 years duration. No need to get fancy if you are an investor.

This is not a prediction or a recommendation. This is what we are doing for ourselves and some friends.

If the market can hold support through November, then we will reconsider.