Every time the markets rally the collective sign of relief can be felt up here in Allenspark, the markets sell off the collective IQ of investors shrinks to fit Sunday football TV advertisements.
Markets have been up 6 out of the last 7 days, enough to move many bearish investors to the bull camp. Where we go from here is an important question. A healthy market will absorb the gains by moving sideways or with a shallow retreat.
We’ve been very quiet and admittedly a bit nervous with our high cash and short positions. Based on recent economic data the economy is not falling over the precipice but negative investor sentiment is very high at the moment, equal to levels seen in March of 2009, before the mega rally.
So, we’re very quiet right now and have developed a shopping list of equities to be purchased upon a pullback. Many will be familiar names from earlier this year and based on our quant models. Names coming shortly.
No positions