There Is Something Wrong With The Economy

Even the most fervent bull cannot deny that there is something wrong with the economy. Data should not be coming out this weak during a recovery, even if there is a large margin of error.

It is very difficult to trade the market based on economic data. If selling when a bad number came out made money, everybody would be rich. The biggest anomaly I see is the discount that safe stocks trade at compared to economically sensitive stocks. It seems like a no brainer to be in defensive stocks.

5 comments:

dukebravo said...

Being in defensive stocks may be akin to seeking out the best cabin on the Titanic. Perhaps being short or flat would be more appropriate!

Tsachy Mishal said...

I was suggesting that long defensives/ short cyclicals made sense to me.

Anonymous said...

great post

Anonymous said...

Long more MIPI @ 1.26

OD

nicasurfer said...

Cash is the same as being short here.

Would dump those longs tsachy