The market was on edge this week, ahead of the ever important JACKSON HOLE. Will the Fed go for another round of QE3 and help 0bama get reelected? Or, will the Fed acknowledge the fact that they have little control over the employment problems in this country and allow the politicians to sort it out for themselves? It’s all too convenient for the cocksuckers in congress to point fingers at Ben and blame him for everything. It might be time for Mr. Princeton to show everyone who’s boss by not doing anything.
Congress talks shit about Ben; but they are eternally grateful to him, in private, for keeping this economy going, albeit by artificial means. The moment the Fed steps away from the economy, all eyes will be on the political apparatus. My guess, people will not like what they see.
I added to my NFLX position. I’m not sure why, actually. It is my largest position and I don’t have a lot of conviction in the name. I will keep it on a very tight leash. In addition, I bought some MCK. My senses suggest drugs and healthcare will be the preferred sectors to own–heading into the elections and the months of September and October. I am in MCK for the $100 roll.
Lastly, I have a big ole stupid sized position in HDGE. As you can see, it is hardly down today, despite the market being +100. It is an actively managed short ETF, with zero leverage. Their largest shorts are C and DB, both excessively rich in valuation–in my humble opinion. It is a hedge, designed to offer protection against spiraling lower equity prices. If it doesn’t pan out in a week or so, I will sell it and move on.
The rest of my assets are in cash, constituting about 35% of assets.