Investors are faced with the decision, as described in a recent Barron’s article, of whether to “bet big on the bull case—and leave themselves exposed if it doesn’t materialize,” or “position defensively and potentially miss the upside.” The article argues that there are several risks troubling today’s investors, including the questionable probability of success for Trump’s policy agenda as well and political uncertainty. But these are partially offset by domestic economic growth, it argues. According to BMO strategist Brian Belski, says Barron’s, indecisive clients might benefit from a “barbell” portfolio strategy that includes both a risk and a defensive component. […]
Investors have been getting jittery lately, given the specter of US interest rate hikes, China’s problems, and Europe’s lingering concerns. But Validea CEO John Reese says that those thinking of abandoning stocks should consider another option.