Getting Constructive

Sentiment is at a bearish extreme. A bevy of indicators are showing that investors are as pessimistic as they have been at other good buy points. I posted a chart showing how poor seasonality has been following June expiration. If this leads to more downside I believe a very good buy point is shaping up.

From a valuation perspective the market does not seem like a bargain. However, I have recently found individual stocks that are good values even if we are heading into a recession. At the beginning of the year healthcare and biotech were a steal as investors dumped the sector wholesale to be in economically sensitive stocks. I believe the same type of indiscriminate selling has produced a new set of bargains. I have bullish positions in VOD, CA, MSFT and CVS.

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