The equity markets are up 11% this week before todays ‘party’. I don’t understand it at all–no surprise that someone who sees the chaos going on couldn’t understand stock prices moving toward where they were a month or two ago. Maybe I am all wet–and should be 100% invested at this moment, but I am fine with 60-65%–I think I will have a chance at lower levels.
At some point markets will wake up–I think–but not now. Investors need to use the levitation to continue to get positioned—maybe you have some issues that you aren’t comfortable holding—a good time to lighten up.
A continuation in nibbling is still the plan. I couldn’t help but add more of the Affiliated Manager 5.15% trust preferred issue (AATRL) yesterday–I am overweight, but the 8% is too attractive to me.
The issues I mentioned Monday and the smaller banks I mentioned yesterday are still attractive–for nibbling. Excepting the AATRL issue I noted above it is all about nibbling.