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.

3 comments:

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%.