Stocks sold off today, as the Coronavirus spread globally. The S&P 500 fell 3.27%, with the other two major U.S. indexes both solidly in the red for the day.
Three Dials Update
Despite the days’ move, the fastest moving of our dials, “Momentum”, is still strong. We would need to see more than a 6% downdraft from here by the end of this week to recommend getting more defensive. Today’s move has essentially taken the U.S. markets back to flat for the year. The effects on our “Fundamental” dial will start to be evident next week as more economic data is released. We will keep you posted on that data. Our “Valuation” dial is not anywhere near to reversing up yet.
One of our key principles at Archetype is “Evidence, Not Opinion”. Rest assured, we will make the appropriate changes when the data demands it, not based on our emotions.