The market tends to correct and sell off when a pandemic strikes such as coronavirus. Yet, this market continues to shrug everything off and rally despite any event playing out. It’s hard to say how much further stocks will rally and we can only look at valuations compared to historical metrics. Share prices look extended compared to historical valuations and easy monetary policy is a driving factor for new all time highs. The statement, “don’t fight the fed” remains true and until an inflection point approaches, remain long, but cautious in this market. Look towards the shorter end of the curve, as the 10 year treasury approaches historical low yield levels at 1.60%. It is possible to cycle out of longer duration and realize market value appreciation on bonds that have greater than 10 years in duration. There is money to be made in this market, just remain cautious and have cash ready for any dump that can occur.

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