Even as Markets Surge, Should Investors Get Defensive?

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By Charles Tan - April 2019

After the first quarter’s sharp rally from December’s selloff, markets are breezy with late credit cycle headwinds and tailwinds. What’s caused this whirlwind of change? In three words: The Federal Reserve.

When the Fed was calm, the market panicked. When the Fed started to panic, the market rallied. The Fed’s 180-degree change on interest rate policy has rescued the market from a sharp sell-off. The question now: after the rally, can Fed policy rescue the slowing economy?

More important, what’s an investor to do about it? Watch my video below to find out what headwinds and tailwinds may affect markets through 2019, and why I believe it’s time for investors to be cautious.

Transcript

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