We're In The 5th Inning - That's Why I Hold Almost 25% Cash

Nov. 16, 2022 1:30 PM ETSPDR S&P 500 Trust ETF (SPY)41 Comments

Summary

  • Recent positive inflation reports have sent the markets soaring. At the same time, I believe a case can be made that markets are getting ahead of themselves.
  • Using a baseball metaphor, I share why I believe we could be in the 5th inning of the "game." Based on recent research, I share 5 factors driving this view.
  • In the final section, I offer suggestions as to how investors can play the remainder of the game, should you agree with the outlook I present.
  • Looking for a helping hand in the market? Members of Hoya Capital Income Builder get exclusive ideas and guidance to navigate any climate. Learn More »

Baseball with cash money. Major league strike, lockout and sports betting concept.

JJ Gouin/iStock via Getty Images

(This article was co-produced with Hoya Capital Real Estate.)

Last Thursday, November 10, the latest CPI report was released. Here is one brief excerpt from the BLS summary.

The all items index increased 7.7 percent

U.S. Interest Rate Yields

U.S. Interest Rate Yields (Bridgewater Associates, LP)

S&P/Case-Shiller U.S. National Home Price Index

S&P/Case-Shiller U.S. National Home Price Index (St. Louis Fed (FRED))

Asset Class Return Outlooks - As of November, 2022

Asset Class Return Outlooks - As of November, 2022 (Vanguard Research)

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This article was written by

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Build sustainable portfolio income with premium dividend yields up to 10%.
I am a recently-retired individual investor and have managed my own investments for over 35 years. My professional background is in the finance area. I believe that the benefits of investing, and the market, should be understandable and available to everyone, including those with little or no financial background. My hope is to explain concepts simply, taking much of the mystery and fear out of the process.  To keep up with my very latest, please subscribe to my Substack newsletter and Twitter feed. In addition to my personal writing, I am a contributing author for Hoya Capital Income Builder

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am not a registered investment advisor or broker/dealer. Readers are advised that the material contained herein should be used solely for informational purposes, and to consult with their personal tax or financial advisors as to its applicability to their circumstances. Investing involves risk, including the loss of principal.

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