Need To Sleep On It

When I lowered my exposure to stocks this morning I did not think a turnaround was in the cards. The truth is I wanted to press my bets but discipline dictated taking a bunch of chips off into a 25 point S&P 500 rally. Luckily, I followed my discipline instead of my gut.

The action in the bank stocks is troubling. I need to sleep on my call for a rally in light of the continued carnage in the bank stocks. I will give you my updated thoughts in the morning.


Chaos! said...

Back to BNI deal. While very different than past Buffet plays, it appears to me to be quite an opportunity.
The deal should close by mid March. At a $3 discount with two $.40 BNI dividends. I come up with around a 13% annualized yield. I can't see other places where one can pick up that kind of return. I am comfortable betting on Buffet.

Tsachy Mishal said...

Its not the type of return we saw on arbitrage earlier in the year, with PFE/WYE and Genentech. But it certainly seems fair.

Chaos! said...

Agreed, but higher returns were to be had in stocks back then. Now after a 60% rally, I don't think we'll beat a relatively easy 13%.