No Edge

The market is set up such that I don't believe I have much of an edge. Friday's jobs report made everybody feel that all is well with the world. Unfortunately, those are not typically ideal times to invest as a lot of good news gets priced into the market. At the same time the market is entering a very seasonally strong period later this week. I have very often seen extended markets like the current one become more extended during seasonally strong periods.

While I am not willing to take on much market exposure I do believe there are individual bargains in corners of the market. Some defensive stocks like Vodafone are being discarded in favor of more economically sensitive stocks. A handful of steady, boring software companies trade at single digit price to free cash flow ratios. My current stance is to be long cheap, steady companies with some market hedges.

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