Event Delay vs. Event Solutions
Take a look back at out August 21 post. How one handles the Macro event that is in process is probably going to be determined by ones attitudes and beliefs. As we have mentioned many times, the FED’s QE-2 and QE-3 programs were in our book, event delays, they did not provide a real solution. If you read the Mauldin letter on Monday, you will see a view that I agree with, the view by Ed Easterling that until the market gets cleaned out with PE ratios in the single digits, this event that started in 2000 is not over.
In the day to day market action you will see many big up and down days as the market completes this Macro cycle. At the moment we may have a few too many big guys like Icahn and Cramer talking bearish talk for the market to continue sharply lower. It will become more negative when when they declare an all clear.