Summer Air Pocket
by Russ MacKay
We have entered earnings season with the most negative pre-announcements since 2001, coupled with low trading volumes and weaker import data out of China. Investors must now await for potential news of fiscal stimulus out of China, further actions by the Fed to stimulate growth, and the next step of restructuring in Europe. You might say we are in a summer air pocket.
Our view is to stay patient with our core holdings and collect the dividends they produce. The low volume of trading may fuel higher levels of volatility, which may present opportunities in the summer months – keep some powder dry.