Summary

Risk assets have very little support - stocks are risk assets.

President Trump's trade policy is high risk and has an unknown ending.

While valuations have come in, earnings are clearly peaking, making the CAPE ratio relevant.

Indexers and closet indexers will get hit badly in a correction or outright bear market.

Use market strength to lighten up allocations to stocks and raise cash levels.

The time has finally come to be a net seller of stocks. This does not mean that stocks cannot continue to go up a while. As I said nearly a year ago in a conversation with Mark Yusko, there is a lot of reason to believe we see 3000 on the S&P 500. To read more, a subscription is needed: Click here to subscribe