Steve Sosnick, Interactive Brokers’ chief strategist, discusses profit taking, IPOs, and how the market is quite speculative these days.
Aiming for high returns is the whole point of investing of course.
But it’s crucial to manage your risk in a market like this.
Photo Credit: Pictures of Money via Flickr Creative Commons
The South America model at Covestor returned positive results in August even though the S&P 500 finished in the red, as well as Latin America as indicated by the iShares Latin America 40 Index ETF (ILF). It was a mediocre month for Brazilian stocks – the largest Brazilian fund, iShares MSCI Brazil Index (EWZ), fell from $ 70.38 on July 30 to $67.75 on August 31 – but the Chilean and Peruvian equity in my portfolio performed well.
As of the date of this report, the S&P500 has managed to rally substantially over the past week and a half. There were some less dire economic reports that came out that pushed the market up. To give some insight to my thinking in August and going forward I am going to spend a little time with some trades I made.
Pier 1 Imports and Royal Gold deserve serious looks in this market climate.
Managers are adjusting their portfolios at rapid speed.
