It’s fair to go hog wild
If you weren’t aware, it’s that time of year where the local, regional communities get together at the Southern California Fair. This year’s theme is “Go Hog Wild.” Local FFA competition, rides, food and special performances provide good family down to earth fun Americana style. As a kid, it was the Hemet Fair and was located on Florida and Palm Avenue. The fun I remember was carefree and a little wild to run about between hay bales, win a goldfish, and ride the Zipper. This fun still exists today in this tradition know located at Perris Fair Grounds.
The market is wild too, as we wrote about recently. There are new rules on trade and our economy. Recently, the United Nations decided on an over ten-year court case between the U.S. and the EU regarding unfair trade practices where the EU was subsidizing airplanes from the EU, creating an unfavorable situation for American made aircraft. The U.S. won and is allowed to even the tables now and impose tariffs. This was pre-President Trump.
News this week prior to China and the United States picking up trade negotiations included the Commerce Department blacklisted twenty-eight (28) Chinese technology companies that are accused to be violating human rights and abuse in the implementation of China’s campaign of repression, mass arbitrary detention and high-technology surveillance against Muslim minority groups. China has ‘strongly urged” the U.S. to remove sanctions and stop accusing it of human rights. The market isn’t hog wild about this news and the tone it gives any negotiations.
I have said it over and over again recently that any substantial negotiation is off the table. In the face of stealing proprietary U.S. company information, the revolt in Hong Kong and now further exposure of human rights, how can a deal be made on just tariffs. This is more than about dollars, which is how dollars became a pain point. What we do know form the recent economic data is that higher tariffs are not translating in higher inflation to us. These readings were down, not up.
Now listen up. This translates into your portfolio, as we have stated. Let your defensive and aggressive sides of your portfolio be even and fair right now. We are around 50/50 and if the market continues to rally upward, we will increase to 40% growth and 60% conservative. Start identifying companies and indices you want to add to your portfolio, how much and at what price. It appears the headwinds are increasing. I want to see the market go lower. When that happens, you can go hog wild. In the meantime, go have some family fun at the So Cal Fair this week. Its good soul food.
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Andrew F. Kotyuk, CIMA* is CEO and Principal of Alpha Wealth Management LLC.
For questions or investment topics, please email me email@example.com.
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