Not A Raging Bull

While I lifted my hedges today, I am not a raging bull. Specifically, I see the possibility of some further downside in the next week or so. But I do expect April to be a relatively good month. Once April passes I see the potential for a larger correction:
  • QE II will be ending which might effect both bond yields and investor psychology.
  • We will see large offerings of AIG and Ally stock
  • Fiscal stimulus will continue to wear off over the Summer.
  • Sovereign and municipal imbalances might start to matter again.
  • The creep of inflation might become more pronounced.
  • Seasonality will be negative.
Because of these longer term concerns, I am positioned in relatively conservative stocks. Have a good night.

1 comment:

Chaos! said...

"Event" risk makes it hard to commit to much in the current market.
Might go fishin' for a few days and let the storm pass.