Paralysis Sets In
It feels like investors and the stock markets are caught in no-mans land.
To me the markets seem surreal at this point, as well they should be as the September 15 – October 15 critical juncture nears. To give me some perspective, I went back and re-read all my blogs here since July 1, something I rarely do. I have to say, that if I had to, I wouldn’t change anything that was written. So here we are on September 9th, the S&P broke out out its little trap box of 1990 to 2011 on the downside. Like any trapped animal, there might be a little thrashing around for the next week or two, maybe even a thrust up to the 2017 price level, or maybe not.
As all of you readers know, I try to view the macro-fundamentals and invest accordingly. This has been difficult since the beginning of 2013 as the artificial FED program has completely run the markets. No doubt the FED took this tack because their efforts to stimulate the economy and increase consumer incomes was failing. Now they are being forced to pull in their horns, not so much because everything is great, but because they need to pull the stimulus back to get ammo for the next cycle and the recession that could occur.
Yesterday on CNBC Jeffrey Gundlach was interviewed. I like and agree with much of what he said, probably because it fits my overall viewpoint.
Yesterday we topped off our ETF portfolios, the leverage levels of the Eureka Portfolio have been gradually increased to around 6:1 with 95 percent of it short stocks, 3 percent short commodities and 2 percent long the dollar.