A diary of the thought process behind my investment decisions
We have seen a large supply of new stock in recent days, which gives the bears an advantage. Mosaic did a $6.5 billion secondary and Glencore did an $11 billion IPO. AIG is scheduled to do a $9 billion re-IPO next week. The good news is that the AIG offering was reduced by more than half and the government will not be selling their remaining stake in GM until August. This means that once the current round of supply is digested, supply should not be an issue for a few months.