(Super Tuesday Transition)



Fear of the Corona Virus in the United States shot to the ceiling sending the market reeling and opening the trap door in the market. This added extreme volatility and massive swings in the market. All domestic indices fell into correction territory. A correction, as I have shared before to you all, is a drop of more than 10%. If you remember this has been a long time coming and we were way overdue for it.

COVID-19, the Corona Virus, breached across the globe and into our comfort zone area. There are now two different strains. 93,000 people worldwide are infected and deaths are at 3,100. The President has weighed in and government funds are being deployed to strengthen the firewall against any outbreak in the United States.

It seems imminent that this is going to heavily impact the global economy as China’s factories shuttered. With this coming at the U.S. economy the Federal Reserve cut Fed Rates by a half a percent in a proactive way to bolster the economy. More cuts maybe on their way. There is uncertainty now on how the earnings outlook will be for corporations and this raises the risk of a recession.

I suggest that based on your portfolio and discipline that you start nibbling at your buy list and adding to your positions. Remember, the lower you buy them more risk you take out of them and the more upside you have. In addition, if you have any defensive positions against the market, I would urge you to reduce or eliminate those positions. The same goes for any fixed income positions you took to park your cash. Bonds should be up in value due to the Fed’s dropping rates. Take the profits. Lastly, if you have losers a down market is no-brainer to sell these and rotate them into a growth position. I would recommend to take your base positions in the broad indices such as the S&P500, the Dow Industrials, and the NASDAQ. You will have diversity and performance similar to the market. Use this Super Tuesday to transition your portfolio.

Lastly, my friends it’s time for me take a break from my weekly writings. I have enjoyed discussing my thoughts and it was during an exciting time of lows and highs and lows again in the market. Hopefully you have some new tools in your toolbox. I am a candidate for State Assembly to represent a good portion of the San Jacinto and need to dedicate my time to this and winning. I look forward to representing you all in Sacramento.

If you have questions on a particular company or investment and would like our feedback, contact us at my email below. Our team will research and respond to you with our recommendation and opinion.

Andrew F. Kotyuk, CIMA* is CEO and Principal of Alpha Wealth Management LLC. For questions or investment topics please email me [email protected].

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