Ok- I’m getting nervous again. Here are some things I am seeing. Just anecdotal at this point, but signs of stress none-the-less.
1. Auto sales- down. Mostly due to the chip shortage- not demand. Demand for cars and trucks are still mostly there- but with fewer sales because of the impact of the chip shortage.
2. Real estate topping out. My wife works in real estate- and the last two weeks, prices had suddenly stopped rising. For the last six months houses were selling like hot cakes, with offers immediately, and many offers over asking price. That’s changing. Now houses are still selling, but not as quickly, and the offers are now below the asking prices. So it’s come much more into balance than it was two or three months ago. Interest rates have pretty much bottomed out, and in some cases, are up a quarter percent from a month ago.
3. Price of oil seems to have finally reached a point where supply/demand is about in balance, but they are still not having settled OPEC plus agreement on price and volume. That’s playing havoc on oil prices. Instability- up and down, and more possible than it has been in some time.
Those three factors make me nervous right now, thinking a summer pullback could be rearing it’s ugly head any day now. Prices for stocks are at very high levels compared to historic ratios. I’m fully invested, but nervous.
Still not yet selling my shares, but I’m very, very closely watching the next week or two, and trying to decide whether it’s time to jump put and rest a while. My year to date is over 16%. I should take the gain and wait for a better opportunity to buy back in.
Anyway- that’s what is on my mind right now. I’m not jumping out yet, but I’m feeling closer to that right now.
Good luck.
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