Investors continue to be risk-averse in 2019. Simultaneous readings by Vanguard’s three (3) “Risk Speedometers” have only been this low 4% of the time in the last fifteen (15) years. That means folks do not have a lot of appetite for risk, i.e., equities or stocks.

This is borne out by the fact that US equity, US ETF’s, and active equity funds all suffered net cash outflows, while taxable bond funds and ETF’s experienced large net inflows of cash. The category receiving the largest cash inflows over the last 1, 3, and 6 months, as well as, the last 1, 3, and 5 years has been Money Market Funds.

Notably, while Money Market Accounts and Intermediate Core Bond portfolios are receiving the largest cash inflows over the last month, their returns placed them 66 out of 103 fund categories and 61 out of 103 fund categories, respectively.

If you have questions about how to invest in this “risk-off” environment, please feel free to contact Intelligent Investing at www.mynmfp.com/new-clients for a no-obligation consultation.

David L. Hogans, Esq. is an author and the founder of Intelligent Investing, Inc., a registered investment advisor firm located in Albuquerque, NM. He earned his Bachelor of Science in Chemical Engineering (ChE) from Virginia Tech and his Juris Doctorate (JD) from the University of Dayton. Mr. Hogans is licensed to practice law in the states of Virginia and New Mexico, as well as, before the Federal Patent Bar. For more information about Mr. Hogans and his firm please see his filing with the Securities and Exchange Commission (SEC) (https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=602988).