Ear towards DC

It seems pretty clear that the markets are hanging on every rumor coming out of DC.

We saw it last week when markets sold off as the rumor circulated that tax reform wouldn't happen until this fall. By Friday the President was calling tax reform a high priority and the markets rallied as the words were broadcast.

Over the weekend he sounded slightly less certain in a TV interview for the SB pregame and on Monday sellers took control again.

Tuesday the one cabinet nominee that Democrats though they could stop was instead confirmed. By the end of the day the NASDAQ was hitting all-time highs.

While we don't think that a market that pays more attention to DC policy than the companies that make up the equities markets is a good thing, we also don't believe in arguing with the stock ticker.

We are sticking with our call to be 100% invested in the index ETF's: QQQ and IVV.  We also are using the ETF HDV to have some high dividend stocks in the mix.