Kee argues that a complicated and cumbersome portfolio, like some of the more popular ones with 20 or 30 stocks to keep track of, makes it tough to manage risk in a timely manner.
“The ease of use of simplifying a portfolio so that it just tracks the market or goes to cash allows it to protect itself quickly, and that’s essential when markets conditions are like they are today,” Kee said, referring to Wednesday when a big market drop saw him initially move to cash, but later switch to buying the S&P 500 due the depth of that fall.
Kee believes we are in a three-phase “greater depression era,” with the first coming when stocks and Main Street crashed in March. “The second stage is when the stock market is disconnecting with Main Street and that’s what we’re in now,” he said.
“The ease of use of simplifying a portfolio so that it just tracks the market or goes to cash allows it to protect itself quickly, and that’s essential when markets conditions are like they are today,” Kee said, referring to Wednesday when a big market drop saw him initially move to cash, but later switch to buying the S&P 500 due the depth of that fall.
Kee believes we are in a three-phase “greater depression era,” with the first coming when stocks and Main Street crashed in March. “The second stage is when the stock market is disconnecting with Main Street and that’s what we’re in now,” he said.