We began moving our High Yield Bond Positions defensive on Wednesday of last week. On Friday we completed those trades and started the year fully defensive in High Yield Bonds.

We began moving our US Stock Positions defensive on Wednesday of last week. On Friday we completed those trades and start this week fully defensive in US Stocks. Developed International Stocks and High Yield Bonds remain fully invested.

We began moving into International Stock Positions on Tuesday and US Stocks Positions on Wednesday this week and completed our moves at the Friday close. On Monday, we’ll be fully invested for all equity asset classes!

The more extreme market declines become, the more extreme following market actions may be.

In this commentary I’ll discuss opportunities that are emerging as markets continue to fall. I’ll also examine the impact of bond losses on conventional 60/40 portfolios. Finally, I’ll look at some of the remaining challenges that face stock and bond markets as we enter the final quarter of the year.