Maybe It’s Time to Just Settle IN

Markets do funny things, maybe strange is a better word, but here today at mid-session we are seeing our portfolio make a new record high and we have not made a trade in the past two weeks other than adding some financial shorts yesterday.  We remain 2/3 short stocks and 1/3 short commodities with no leverage in the total portfolio.

Again I would term our approach as aggressive in decision making and conservative in leverage.  The bottom line is that the market seems to be ratcheting around; one day commodities go down, one day stocks go down and vice versa, with little warning.  The only thing we see is that the general price level on everything is headed lower, houses, stocks, commodities, farm land, you name it as the economy de-leverages.  It will be difficult to pick your area of expertise, so maybe the shot gun approach to sectors is right, and cash remains king.

11:00 AM CDT

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