In their February commentary, Churchill Management Group explains why they reduced equity exposure in their tactical strategies.
“Starting with the first trading day of 2014, the market began a sharp correction. While an accommodative Fed has continued to fuel the stock market, recent Taper-talk (the reduction of monetary stimulus added to the economy) combined with international currency worries gave the market brief concerns. At one point during January, the Dow Jones Industrial Average had fallen 7.5% off its highs. The market has regained footing since then, although volatility has also increased.
Knowing that the market is forever cyclical, the question is whether the stock market is in a Topping phase or did it just need to catch its breath before continuing the long Bull Market that began almost five years ago?”
(WrapManager is not affiliated with Churchill Management Group, and it has not approved for use nor entered into contract with Churchill Management Group. Data is being presented for informational and comparison purposes only.)