Historic Times…..with Split Update
There has been a lot of talk the last few days of these historic times, the market of the century, etc.Â Volatility seems to be in the air, the Government is handing out money in 50 and 100 billion dollar bundles to the big bad guys.Â As suchÂ Wall Street is setting on a pile of funny money, the last time that happened in 1929 we saw volatility that makes the recent stuff look pretty mild.Â
So look for anything to happen with this funny money now, moves like after the October 1929 crash when the market rallied 30 percent in 15 days leading up to December 6 1929 and then went on to new lows later. This is not a 1929 situation yet, just a preview, but there will be whiplash for a while that will get everyones attention.
As to those two giuys joining the Cubs, I think after last night we will have to take a pass.Â The high AIG flyball will eventually be caught for another out.
We remain in cash in the conservative portfolio and fully invested in the aggressive portfolio.
7:40 AM CDT
Split Update at 8:58 AM
For aggressive positioning:Â Â In a loose sense it looks like the loose money is splitting the market into two pieces, ie sellÂ bonds, buy everything else, stocks, gold, oil, commodities, etc.Â Because of the volatility don’t chase rallys, but be aggessive on selloffs. We think the crazy times are here.