- We are headed into a very seasonally strong period. In seasonally strong periods extended markets often become more extended. A lesson I have learned the hard way numerous times.
- The backdrop of corporations aggressively repurchasing shares remains.
- The S&P 500 trades at 13.5 times expected earnings for 2012, which is reasonable.
Given the market backdrop I am very comfortable with my positioning. I am finding some very attractive stocks that have been discarded as investors chase beta. I believe these should outperform my hedges over time regardless of market direction.
1 comment:
In honor of the upcoming NFL draft, a Wonderlic-like test for those following the financial markets...
One of these does not fit with the others -- which one? High unemployment, record low workforce participation, record high foodstamp uptake, high-flying equity markets.
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