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.