Is it risky to remain long stocks?

Founder and Publisher of the Switzer Report
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The chances of a stock market correction increased last week so don’t be surprised if the smarties think it’s time to take profit. The failure of the Fed Chair, Jerome Powell, to excite the market with his press conference and Donald Trump’s escalation of the trade war, has to make it hard for stocks to keep sneaking higher.

Then we have earnings season upon us locally and, as the AFR headlined today, it looks like it could be “brutal!” Miners should report impressively but industrials have had to deal with a sub-2% growth, restricted lending from banks, the pre-election anxiety-affected lower confidence of both business and consumers and all the negativity that has come out of the trade war escalation.

With the US President slamming a 10% tariff on the remaining $US 300 billion worth of Chinese goods now not tariffed (as of September 1), with threats this could be increased to 25% (like the other $US 250 billion worth of goods from China), it’s hard to see the next leg higher for stocks any time soon.

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