This has been a tough few weeks for investors and may continue for several more. My advice, however, is: Don’t change your strategy. If your plan was to stay in the market and ride out secondary movements, stick to your plan. Investors are notorious for selling at the wrong time and buying at the wrong time.
Weak economic data out of Europe is likely to hold back the market until the reporting cycle, that started with positive earnings surprises from Costco and Alcoa this week, is well under way. None of our macroeconomic and volatility filters indicate market stress and we believe the best strategy is to maintain existing exposure to equities.
Liquefied Natural Gas [LNG]
LNG had a less than auspicious introduction to the ASX 200, with a sharp sell-off in the last few weeks. There are signs that buyers are returning to the stock, with a strong blue candle on Friday when most other stocks were falling. We recommend that investors continue to hold the stock, at least for the next few weeks.