You sure know how to crash my party. Have been feeling really clever with the portfolio sitting near all time highs and now have to contemplate raising cash. I did buy some BBUS on the ASX last week to hedge against a US crash, so agree with your concerns. I read John Hussman's weekly report (www.hussmanfunds.com) and he is looking for a 40 to 50% crash in S&P500 some time soon. Such a crash would probably weaken the AUD which should help WPL, but then again I've seen the opposite reaction most of the time because the US holders sell to avoid forex losses.
The S&P has traced out a diverging wedge (megaphone) over the last 15 years and now has traced out a similar pattern over the last year at the top. Looks ugly to me, but technical analysis has a habit of tripping us up when we can least afford it.
BB, your concern is appreciated.
WPL Price at posting:
$27.00 Sentiment: Hold Disclosure: Held
(20min delay)