US equity markets have been invigorated and we’re selling off our hedges into today’s upward move. What I perceived two weeks ago as a market rolling over, did indeed roll over…but only for a day. Most of our indicators are still pointing to a higher market so I prefer to take a two point loss on the TWM and let this market run its course.
Smaller cap stocks have showed renewed strength this week as I get the sense that investors are starting to finally believe in the economy. Notice the renewed weakness in the ten year Treasury bond. For investors holding the bulk of their assets in bonds or interest rate sensitive securities with the belief that risk is minimal, please think again:
Frequently I’m asked about new holdings: JBSS John B Sanfilippo is ranked at the top in our model. JBSS is a processor of nuts and owner of the Fisher Nuts brand. The stock sells below book value of $18. Price to sales is a staggering .22%. We’ve been buying in the $10 to $11 range.
Long JBSS