This is What Rotation Looks Like

Good day,

I warned you of an impending rotation out from high beta stocks into low. I even elucidated my thinking by showing you my portfolio yesterday, something I used to do regularly here back in the day but now is reserved only for the confines of Stocklabs. At any rate, I think it’s fair to say this rotation is not only underway, but in full force and ceremony.

Although tempting to fish into the polluted water where you transcribe your days, I endeavor to survive the fires and beyond and buy cheaply, whenever possible. If you believe Israel’s attack on Iran last night was the final salvo in this endless war, wait until what’s next.  Whether you are a bull or a bear I think everyone can acknowledge that things aren’t exactly right and there are fissures and cracks in the edifice, which may of course give way and cause a real capitulatory collapse. This drip drop decline isn’t really injurious to professional managers. Wait until VIX is at 50 and they’re screaming from the rooftops for Powell to save them.

We aren’t there yet.

In summary, I am long consumer staples/olde man stocks.